Jefferies maintained its ‘Buy’ rating on Wayfair and noted that it sees the company’s market share gains accelerating in the second half as first-party retailers pass along more price increases.
Wayfair (W) witnessed a price target hike from Jefferies on Wednesday, with the firm noting that sharper prices at the retailer have been improving consumers’ value perception of the home furnishings marketplace.
Retail sentiment on Wayfair improved to ‘neutral’ from ‘bearish’ territory a day ago, with message volumes at ‘low’ levels, according to data from Stocktwits. Shares of the company were up nearly 2% during midday trading.
Jefferies maintained its ‘Buy’ rating on Wayfair, according to TheFly. The firm noted that it sees Wayfair’s market share gains accelerating in the second half as first-party retailers pass along more price increases. In early August, CEO Niraj Shah said Wayfair’s second quarter “was a resounding success, defined by accelerating sales and share gain, in tandem with expanding profitability.” “We can and will grow profitably, while taking a significant share in the market,” he added.
Wayfair had reported that its second-quarter active customers totaled 21.0 million, marking a decrease of 4.5% year over year, while its last 12 months’ net revenue per active customer was $572, representing an increase of 5.9% year over year.
Truist analyst had noted that while the Home Furnishings segment remains challenged, it’s improving on the margin, with Wayfair gaining share on strong internal execution with improving unit economics. Shares of Wayfair have jumped nearly 84% this year and gained 86% in the last 12 months.
For updates and corrections, email newsroom[at]stocktwits[dot]com.<