Wayfair (W) PT Lowered to $180 at Needham & Company
Needham & Company analyst Anna Andreeva lowered the price target on Wayfair (NYSE: W) to $180.00 (from $225.00) while maintaining a Buy rating.
The analyst commented, "The few positives from W's call include: 1) at 76% of total orders, repeat continues to edge up; 2) streamlining SRB (estimate MSD headwind to sales in '21) should be complete by mid year; and 3) despite W waiving CastleGate pick-pack fees, GM are still expected at 27%-28% for '22 (lower end in 1Q22, potential for upside in 2H22). At the same time, # of active customers declined 12% y/y, 1Q22 to date sales at down low teens are slightly worse sequentially (albeit wayfair.com, perigold and B2B are trending better than total and Jan > Dec and Feb > Jan--similar to what OSTK is seeing this 1Q22), and EBITDA is expected negative again in 1Q22 as W continues to invest. Lowering est. and PT; at 1x EV/Sales, valuation should be close to bottoming (20% of market cap in cash), although sales need to begin to stabilize for the stock to work."