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Wayfair (NYSE:W) was tracked after JPMorhan issued a two-tier upgrade to the stock to an Overweight rating from Underweight.
Analyst Christopher Horvers and team said Wayfair (W) is still structurally relevant in home retail industry with its top online assortment and favorable supply chain, while the market has dramatically changed its view to the downside.
Views on Wayfair (W) is that both a positive change in market share trends and management’s renewed commitment to cost/investment control will cause a significant change in the strong negative earnings adjustment in the two past year to the ocean.
“Additionally, over the next 3-5 years, W will outperform the category due to its long-term shift to online retail and the advantaged supply chain/category as a specialist company. largest online specialty in the industry.”
JPMorgan has assigned a price target of $82 for Wayfair (W) based on 0.7X EV/sales multiple, which was recorded as 1.5x the pre-COVID average. The company also notes that PT is at just under $82, where W was trading just before COVID.
Wayfair (W) appear 8.35% in premarket trading on Monday to track a 20% rally on Friday after the e-commerce retailer announced a cost restructuring plan.
