Wayfair price target lowered to $50 from $58 at BMO Capital

BMO Capital lowered the firm’s price target on Wayfair (W) to $50 from $58 and keeps a Market Perform rating on the shares after its Q3 results and guidance. The firm is more cautious as consumers are not buying into promos heading into the election and based on the company’s ongoing take-rate initiatives, which will nudge gross margins to low 30% through the first half of FY25, though Wayfair’s demand initiatives are leading to share gains, and Loyalty should increase the number of customers purchasing 3 to 8 times per year, the analyst tells investors in a research note.