On Tuesday, Mizuho Securities initiated coverage on Wayfair (NYSE:W), the online home furnishings retailer, assigning a Buy rating and setting a price target of $72.00. The firm highlighted Wayfair's resilience in the competitive home furnishings market and its favorable positioning as economic headwinds begin to subside.
The analyst noted that Wayfair continues to compete effectively despite the broader challenges in the home furnishings sector. The company is reportedly showing early signs of sustainable positive order growth and is gaining market share. Additionally, there appears to be a reversal in housing trends that could benefit the company.
Wayfair's management has been credited with executing a significant turnaround within the core business. This includes cutting nearly $2 billion in annualized costs and moving rapidly towards achieving mid-single digit EBITDA margin profitability. The analyst suggests that these improvements have not been fully recognized by investors.
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