Wedbush Raises Price Target on Wayfair (W) Following 2Q EPS Beat
Wedbush reiterated an Outperform rating on Wayfair (NYSE: W), and raised the price target to $55.00 (from $40.00), following 2Q earnings release. Net revenue increased to $492m, ahead of consensus $439m. Wayfair reported EPS of -$0.15, beating out the consensus estimate of -$0.29.
Analyst Seth Basham commented, "W reported an outstanding quarter driven not only by top line strength, but also by strong flow through to the bottom line. As importantly, for the first time since the company’s IPO, W not only guided forward quarter revenue well above consensus, but also guided EBITDA margin well above consensus. Underlying these potent headlines is increasing evidence that W’s business model is sound as repeat customer activity accelerates and customer acquisition cost payback periods decline. We reiterate our OUTPERFORM rating and raise our estimates and target price to $55 (from $40)."
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Shares of Wayfair closed at $48.95 yesterday.