Youssef Squali, an analyst from Truist Financial, maintained the Buy rating on Wayfair (W – Research Report). The associated price target was lowered to $53.00.
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Youssef Squali has given his Buy rating due to a combination of factors including Wayfair’s ability to maintain its market share and improve cost efficiencies over the past two years, despite challenging conditions in the home furnishing sector. Squali sees these improvements as potential catalysts for growth and margin expansion once economic conditions become more favorable. Additionally, management’s commitment to achieving higher adjusted EBITDA in FY25 compared to FY24 indicates a positive outlook.
Wayfair’s revenue performance in the fourth quarter of 2024 exceeded expectations, driven largely by U.S. sales, even though there was a decline in order deliveries. The increase in average order value helped offset the decrease in the number of orders. The company’s strategic advertising efforts during the holiday season, although resulting in higher-than-anticipated ad spend, reflect a proactive approach to driving demand. These factors, along with the company’s ability to slightly exceed sales estimates in early 2025, further support the Buy rating.
In another report released on February 13, Morgan Stanley also reiterated a Buy rating on the stock with a $72.00 price target.