Barclays Upgrades Wayfair, Lifts PT After 2Q Sales Beat

Barclays upgraded Wayfair to Hold from Sell after the online furniture store exceeded analysts' expectations for second-quarter revenue driven by increased demand for its e-commerce products during the coronavirus pandemic.Wayfair (W) posted earnings of $3.13 per share in the second quarter topping Street estimates for $1.04 per share. Total revenue rose 84% to $4.3 billion in the reported quarter year-on-year, beating the $4.06 billion forecast by analysts.Barclays' Tennant raised the stock's price target to $321 (6.5% upside potential) from $153. In a research note, the analyst said said that “Wayfair's model includes continued sales acceleration, visibility on a sustained path to profitability, and "materially improved" cash flow resulting from COVID-19-driven trends in home.”Meanwhile, Oppenheimer analyst Brian Nagel maintained a Buy rating and lifted his price target to $395 (31.1% upside potential) from $200. He stated that his "continued positive call on Wayfair is generally longer term in nature and considers potential nearer-term volatility in shares.”Piper Sandler analyst Peter Keith, who increased the price target to $370 (22.8% upside potential) from $275, believes that Wayfair's "long-term EBITDA margin target of 8%-10% now looks conservative.” Keith maintained a Buy rating.Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 11 Buys, 9 Holds, and 3 Sells. Following Wayfair's 234% stock rally year-to-date, the average price target of $261.59 implies downside potential of 13%. (See W stock analysis on TipRanks).Related News: Etsy Crushes 2Q Revenue Expectations; Roth Raises Stock To Buy Roku Tops 2Q Estimates But Cautions About Ad Outlook Zynga Rises On Record 2Q Revenues Fueled By Digital Gaming Demand More recent articles from Smarter Analyst: * Live Nation 2Q Loss Widens; Shares Decline * Bausch Health To Spin Off Eye Care Business; Shares Surge 18% * WDC Sinks 11% In Pre-Market On Earnings Outlook Miss * Wix Plunging 10% As Earnings Fall Far Below Expectations

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