$175 price target and buy rating

  • Wayfair Inc (NYSE:W) shares received a $175 price target from Guggenheim. These are the details.

Wayfair Inc (NYSE:W) shares received a $175 price target from Guggenheim. And Guggenheim analyst Steven Forbes maintains a “Buy” rating on the stock.

“As expected, although W’s Q4 2021 operating results were relatively in line with expectations – net sales down double digits and adjusted EBITDA margin at breakeven – management’s initial outlook for 2022 validated our near-term caution regarding consensus EBITDA margin expectations. In fact, the anticipated pressure from rising compensation costs was worse than we expected,” Forbes wrote in a research note. “As a result, while we still expect this return to mid-20% revenue growth at some point in 2H 2022 (as reflected in our expectations for 4Q 2022), we are significantly lowering our estimate of the Adjusted EBITDA for 2022, at $22 million versus $410 million. W shares are already trading at pre-COVID valuation levels – 1.0x EV/NTM sales vs 2017-2019 average of 1.1x – combined with the fact that our 2022 net sales forecast (14.4 billion) essentially involves no sustained sales related to COVID lift.”

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