Analyst Simeon Gutman of Morgan Stanley maintained a Buy rating on Wayfair (W – Research Report), retaining the price target of $72.00.
Simeon Gutman has given his Buy rating due to a combination of factors that reflect Wayfair’s strategic initiatives and financial outlook. The recent reduction in Wayfair’s technology workforce is seen as a proactive measure to enhance productivity and efficiency, aligning with the company’s broader restructuring efforts. This move is expected to generate significant cost savings, estimated between $30 million to $60 million, which could bolster Wayfair’s EBITDA and support its profitability goals for 2025.
Despite the current softness in sales and looming tariff uncertainties, Gutman views these cost-saving measures as a positive step towards managing profitability. However, he emphasizes that the key to Wayfair’s stock performance lies in achieving revenue growth, gaining market share, and demonstrating improved profit margins as the home furnishing market conditions improve. These strategic actions and potential for financial improvement underpin Gutman’s optimistic outlook on Wayfair’s stock.
Based on the recent corporate insider activity of 75 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of W in relation to earlier this year.