Analysts have raised their price target for Wayfair slightly, increasing it from $83.17 to $84.90. They cite minor improvements in profitability and discount rate assumptions as reasons for this adjustment.
What's in the News
- Wayfair announced its next large-format retail location will open in Denver, Colorado in late 2026. The new 140,000-square-foot store represents the company's first entry into the Mountain West region and is part of an accelerated nationwide expansion. (Key Developments)
- This Denver location follows the opening of Wayfair's first store in Wilmette, IL, as well as new store announcements in Atlanta, GA and Yonkers, NY. This signals growing investment in physical retail. (Key Developments)
- From April 1, 2025 to June 30, 2025, Wayfair completed the repurchase of 2,354,491 shares, equal to 2.33% of shares outstanding, for a total of $611.61 million under the buyback program announced on August 21, 2020. (Key Developments)
- No shares were repurchased during the same period under the buyback program announced on August 10, 2021. (Key Developments)
Valuation Changes
- Fair Value: Increased slightly from $83.17 to $84.90 as a result of updated profitability and discount rate assumptions.
- Discount Rate: Decreased marginally from 9.07% to 9.05%, indicating a slightly lower required return by analysts.
- Revenue Growth: Edged down from 4.89% to 4.89%, reflecting minimal adjustment to future growth expectations.
- Net Profit Margin: Improved modestly from 1.00% to 1.02%, signaling higher anticipated profitability.
- Future P/E: Declined fractionally from 111.25x to 110.99x, which points to minor recalibration in valuation multiples.
Disclaimer
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