Gordon Haskett upgraded Wayfair ( NYSE: W ) to Hold-Rated from Reduce-Rated after the online retailer's management team outlined a path to profitability.
"Wayfair outlined a multi-quarter pathway to improved EBITDA margins beginning in 4Q22 and extending into early 2023. All told, we think the bear case versus bull case on the stock is more balanced today, particularly with the W trading at~ 0.6 P/S (vs. its historical average of 1.1x)," updated analyst Chuck Grom.
Grom and team adjusted estimates on Wayfair ( W ) after taking in the guidance update and commentary. For the full year, the firm now sees revenue of $12.1B vs. $12.8B prior and $12.7B consensus and adjusted EBITDA of -$394M vs. -$523M prior. EPS of -$7.41 is anticipated vs. -$8.57 prior and -$6.78 consensus. Gordon Haskett hiked its price targer to $65 from $40.
Shares of Wayfair ( W ) were down 2.60% on Thursday to $62.77 at last check.
Read a breakdown of Wayfair's ( W ) earnings report and dig into the earnings call transcript.
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Wayfair pares loss after Gordon Haskett moves off bearish stance