Upcoming Wayfair (W) IPO Scores Low at Triton Research

September 3, 2014 4:53 PM EDT
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Price: $309.50 +0.65%

Rating Summary:
    21 Buy, 18 Hold, 3 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 14 | Down: 9 | New: 25
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Triton Research initiated research coverage on the upcoming IPO for Wayfair (NYSE: W) with a 5.95 rating, which is below average for tech IPOs scored by Triton Research generally, and zulily (7.38) in particular. The firm's average IPO rating is 5.95.

Wayfair sells home goods principally to U.S. consumers through five websites.

"Although Wayfair's customer acquisition has been successful, the Company controls neither product manufacturing nor logistics and distribution, and is therefore less defensible than a vertically-integrated e-commerce platform," Triton stated. They added, "Investors will also be concerned about future profitability, as well as poor disclosure and a dual-class stock structure."

Competitors include: One Kings Lane, Hayneedle, Overstock.com, Amazon.

Lead underwriters for the deal are Goldman Sachs, Bank of America, Citigroup and Allen & Co.. Investors include Great Hill Partners, HarbourVest Partners, Battery Ventures, Spark Capital and T. Rowe Price.

The company's road show is expected to start this month. Shares are expected to list on the NYSE under the symbol "W."



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