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New Wayfair Survey Shows Progress

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Piper Jaffray’s Neely J.N. Tamminga reiterated an Overweight rating on Wayfair Inc (NYSE: W), with a price target of $86.

Financials

“Having already tested and planted early investments in markets outside the U.S., Wayfair is accelerating its investment in Canada, the U.K. and Germany,” Tamminga mentioned.

This is expected to impact 2016 financially, which is reflected in the guidance for Q1 adjusted EBITDA of 3-3.5 percent.

Following the company’s 10K filing and a deeper analysis of Piper Jaffray’s model and assumptions, Tamminga expects 2016 adjusted EBITDA of $1.4 million, as compared to the earlier estimate of adjusted EBITA loss of $36.7 million.

Job Openings

In addition, a proprietary analysis of Wayfair’s job openings suggests that 25 percent of the more than 550 jobs are in the international markets.

“We analyzed Wayfair's "Career" page to better understand the company's human capital investments. In total, the largest bucket of job openings domestically and internationally were in the operations department,” the analyst explained.

Survey Shows Progress

Piper Jaffray’s semi-annual women’s survey indicated that Wayfair helped increase awareness to 80 percent, from 71 percent six months ago.

Tamminga also noted that “Wayfair emerged in the top 10 on an unaided basis when we asked women to name their favorite websites,” while adding that the company “increased its ranking among the average income set in our survey as a preferred shopping destination for home-related goods.”

Latest Ratings for W

DateFirmActionFromTo
Dec 2019MaintainsBuy
Nov 2019Initiates Coverage OnUnderweight
Nov 2019UpgradesHoldBuy

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Posted-In: Neely J.N. Tamminga Piper JaffrayAnalyst Color Long Ideas Reiteration Analyst Ratings Trading Ideas

 

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