Wayfair reinvesting should allow for better long-term profit growth, says Citi

After Wayfair (W) announced it will exit Germany, which has notably lagged its other international markets, and plans to reinvest the savings back into its core domestic growth initiatives and other current international markets, Citi says “some investors may be disappointed” with the decision to reinvest the savings back into the business. However, the firm believes the decision to allocate more resources to higher return-on-investment growth areas “should allow for better profit dollar growth over the long term.” Citi has a Buy rating and $54 price target on Wayfair shares.