US$112 - That's What Analysts Think Wayfair Inc. (NYSE:W) Is Worth After These Results

Shareholders will be ecstatic, with their stake up 23% over the past week following Wayfair Inc.'s (NYSE:W) latest quarterly results. Revenues of US$3.1b beat expectations by a respectable 3.5%, although statutory losses per share increased. Wayfair lost US$0.76, which was 204% more than what the analysts had included in their models. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from Wayfair's 29 analysts is for revenues of US$13.0b in 2026. This would reflect a modest 6.5% increase on its revenue over the past 12 months. Wayfair is also expected to turn profitable, with statutory earnings of US$0.14 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$12.8b and losses of US$0.37 per share in 2026. The analysts have definitely been lifting their expectations, with the company expected to reach profitability next year - sooner than expected - thanks to the small increase to revenue expectations.

See our latest analysis for Wayfair

With these upgrades, we're not surprised to see that the analysts have lifted their price target 32% to US$112per share. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Wayfair at US$150 per share, while the most bearish prices it at US$75.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Wayfair's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 5.2% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 4.3% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.1% annually. So while Wayfair's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The most important thing to take away is that there's been a clear step-change in belief around the business' prospects, with the analysts now expecting Wayfair to become profitable next year. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Wayfair going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Wayfair that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.