Wayfair (W) PT Raised to $145 at Needham

Needham analyst Bernie McTernan raised the price target on Wayfair (NYSE: W) to $145.00 (from $133.00) while maintaining a Buy rating.

The analyst commented: "We reiterate our Buy rating and increase our one-year PT to $145, using a 20x adj. EBITDA multiple. The standout this quarter was W validating their shift to HSD revenue growth from MSD previously, growing nearly 10% in the quarter. While the category remains sluggish, W is driving growth through share gains and encouragingly remains early innings in a variety of growth initiatives including Rewards and their physical store roll out. Margins performed better than expected in 3Q, but driven by one-time items, and we expect contribution margin to return to ~15% going forward. We continue to be bullish on shares as W is driving market share gains from idiosyncratic growth initiatives."

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