BMO Raises Wayfair PT to $68, Maintains Market Perform Rating

BMO Raises Wayfair PT to $68, Maintains Market Perform Rating

BMO Capital Markets has raised its price target for Wayfair Inc. (W) to $68 from $60, while maintaining a "Market Perform" rating. This upward revision reflects the company's strong performance and the analyst's positive outlook for the stock. The move comes after a series of positive analyst actions in recent weeks, indicating growing confidence in Wayfair's growth prospects.

Wayfair's Q2 CY2025 earnings report saw a 21.8% year-over-year revenue growth, slightly missing Wall Street's high expectations by 1%. The GAAP loss of $0.35 per share was 10.2% below analysts’ consensus estimates. The company lifted its full-year revenue guidance to $6.2 billion, a 1.5% increase. The stock traded up 13.1% to $62.50 immediately after reporting [1].

The key driver behind Wayfair's recent performance has been the continued growth of its e-commerce platform, which has attracted millions of users. The company's CFO, Jonathan L. Berman, attributed the growth to Wayfair's investments in search and discovery features, which offer greater visibility to products on the platform [2].

Wayfair's Q2 CY2025 highlights include:
- Revenue: $1.4 billion (21.8% year-over-year growth, 1% miss)
- EPS (GAAP): -$0.35 (-10.2% miss)
- Adjusted EBITDA: $15.2 million (1.1% margin, 82.3% miss)
- Daily Active Users: 11.3 million (35.4% year-over-year growth)
- Hours Engaged: 5.8 billion (52% year-over-year growth)

The company's strong user growth and the success of its e-commerce platform have been instrumental in driving Wayfair's recent performance. As the company continues to invest in its platform and attract more customers, it is well-positioned to capitalize on the growing demand for e-commerce services.

References:
[1] https://www.tradingview.com/news/stockstory:c96db0510094b:0-wayfair-nyse-w-reports-sales-below-analyst-estimates-in-q2-earnings-but-stock-soars-13-1/
[2] https://www.reuters.com/business/media-telecom/viral-hit-grow-garden-pushes-roblox-past-100-million-users-lifts-bookings-2025-07-31/