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Analysts Getting More Neutral On Wayfair Following Earnings

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Wayfair Inc (NYSE: W) reported second quarter results on Tuesday that fell short of analysts estimates. Its outlook for the third quarter also fell shy of predictions. Those were enough for investors to punish the stock, dragging it down more than 4 percent to $37.15.

Following the results, analysts dished out their comments. There is a near unanimity about two things: 1) Wayfair as a long-term bet, but with short-term pain and 2) The slashing of the price objective on company's shares.

  • Oppenheimer maintained its Perform rating while reducing estimates for the current year and next year. The brokerage sees the challenges of scaling last mile delivery.
  • Pacific Crest has a Sector Weight rating on the stock. Views long-term investment makes near-term investing difficult following the results.
  • Wedbush maintained Outperform rating. Price target slashed from $60 to $55. Strong absolute growth seen in the second quarter, but below expectations.
  • Bank of America downgraded shares to Neutral and reduced its price objective from $54 to $45. Growth slows on tough comps. Investment spend is a drag.
  • Goldman Sachs removed shares from Americas Buy list. The brokerage downgraded the stock from Buy to Neutral and slashed its price target from $46 to $43.
  • Maxim Group continues to see Wayfair to disrupt the Home category. Retained Buy rating and reduced price objective from $50 to $49.

Latest Ratings for W

DateFirmActionFromTo
Aug 2016Bank of AmericaDowngradesBuyNeutral
Aug 2016Goldman SachsDowngradesBuyNeutral
Aug 2016WedbushMaintainsOutperform

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Posted-In: Analyst Color Earnings News Price Target Analyst Ratings

 

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