Jefferies Raises PT on Wayfair to $91, Maintains 'Buy' Rating

Jefferies has raised its price target on Wayfair Inc. (NYSE:W) to $91, a 23% increase from its previous estimate, while maintaining a "Buy" rating. The firm cites improved customer sentiment towards the online home goods retailer, driven by sharper pricing and record levels of buy intent, as per a Morning Consult survey. Jefferies reaffirms its sales and EBITDA expectations for 2025 and 2026, which are above consensus.

Jefferies has increased its price target on Wayfair Inc. (NYSE:W) to $91, representing a 23% increase from its previous estimate. The firm maintains a "Buy" rating, citing improved customer sentiment towards the online home goods retailer. This sentiment is driven by sharper pricing and record levels of buy intent, as per a Morning Consult survey. Jefferies has also reaffirmed its sales and EBITDA expectations for 2025 and 2026, which are above consensus.

The positive outlook for Wayfair comes amidst a challenging macroeconomic environment. The real estate market remains dismal, with existing home sales at levels similar to the Great Recession. Mortgage rates are high, and home prices are significantly overvalued when adjusted for inflation. These factors have led to a decline in home sales and a shift in consumer spending towards home goods. Companies like Wayfair, TJX, and IKEA have seen a boost in sales as consumers invest in sprucing up their existing homes [2].

Wayfair's recent financial report showcased a 5% surge in second-quarter revenue, breaking a two-year sideways pattern. The company's CEO, Niraj Shah, attributed this growth to a flourishing physical store in Chicago and plans for new stores in Atlanta, New York, and Denver. The company's exclusive focus on e-commerce has allowed it to capitalize on the trend of consumers redecorating their homes due to the dismal real estate market [2].

While Wayfair's stock has faced challenges due to the ongoing tariff investigation on furniture imports, which could lead to price increases for consumers, the company's strong financial performance and positive customer sentiment suggest a robust outlook. Jefferies' positive assessment aligns with the broader trend of consumers shifting their spending towards home goods, driven by the current economic conditions.

References:
[1] https://www.ainvest.com/news/wayfair-shares-plunge-trump-tariff-investigation-furniture-imports-2508/
[2] https://www.forbes.com/sites/gregpetro/2025/08/27/stymied-homeowners-drive-home-goods-sales-at-wayfair-tjx-ikea/