Wayfair (NYSE:W) experienced a more than 5% increase intra-day today following an upgrade from Piper Sandler. The analysts raised the stock’s rating to Overweight from Neutral and set a new price target of $97.
The upgrade was based on several key factors. First, the Q2 Furniture Retailer survey indicated that the home furnishings industry is stabilizing, leading to improved sales and regained market share for Wayfair.
Second, suppliers’ feedback after Wayfair’s Supplier Summit in June was highly positive, indicating increased confidence in using Wayfair’s services like CastleGate and advertising, which is crucial for the company’s gross margin expansion.
Moreover, the analysts expressed confidence in Wayfair’s potential to achieve sustained EBITDA profitability. The upcoming Investor Day on August 10 is expected to further enhance investors’ confidence in the company’s future profitability prospects.