Wayfair (W) PT Lowered to $58 at BMO Capital

BMO Capital analyst Brian J. Pitz lowered the price target on Wayfair (NYSE: W) to $58.00 (from $61.00) while maintaining a Market Perform rating.

The analyst comments "We maintain our Market Perform and lower our target price to $58 from $61 on the following: 1) near-term gross margin compression as Wayfair leans into pricing to ensure ongoing wallet share gains; 2) lingering cyclical headwinds within the Home Goods category, which is down ~35% from the 4Q21 peak; and 3) a cautious consumer given the inflationary backdrop. Our 2024E revenue/adjusted EBITDA is now $11.8B/$497M vs. $12.1B/$591M. We applaud Wayfair's pricing investments to ensure ongoing market share gains and L/T gross margin expansion."

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