Wayfair Inc (W) Gets a Buy Rating from Oppenheimer

By Jason Carr

In a report released today, Brian Nagel from Oppenheimer maintained a Buy rating on Wayfair Inc (WResearch Report), with a price target of $190. The company’s shares opened today at $147.61.

Nagel said:

“Earlier today, Outperform-rated Wayfair (W) reported results for Q1 (Mar.) and outlined guidance for the period ending June. Shares are trading lower this morning as investors question the lack of flowthrough to the bottom line, despite exceptionally strong +39% Direct Retail revenue growth, coupled with better gross margins. In our view, the market remains decidedly skeptical toward prospects for W to demonstrate a clear path toward near-term profitability. We commend mgmt for its focused efforts in building out a potentially much more powerful, inventory-light Wayfair model, and expect indications of operating leverage to emerge toward the later stages of 2019. We continue to view W as one of the best secular growth stories in all of consumer and stand behind our longer-term positive call. We update our earnings estimates inside.”

According to TipRanks.com, Nagel is a 5-star analyst with an average return of 9.3% and a 65.7% success rate. Nagel covers the Services sector, focusing on stocks such as Weight Watchers International, Capri Holdings Limited, and Dick’s Sporting Goods.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Wayfair Inc with a $157.12 average price target.

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Based on Wayfair Inc’s latest earnings release for the quarter ending December 31, the company reported a quarterly GAAP net loss of $144 million. In comparison, last year the company had a GAAP net loss of $108 million.

Based on the recent corporate insider activity of 290 insiders, corporate insider sentiment is negative on the stock.

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Wayfair, Inc. engages in an online home furnishing store. It offers a selection of home furnishings and decor across all styles and price points. It operates through the U.S. and International segments.