Shares of Wayfair (NYSE:W) jumped 16.2% on Monday, following bullish analyst remarks.
Truist analyst Naved Khan lifted his rating on Wayfair’s stock from hold to buy and boosted his price forecast from $315 to $370. Khan’s new estimate represents potential gains to investors of roughly 10% from the stock’s current price near $336.
Khan highlighted Wayfair’s leadership in home furnishings and its accelerated expansion during the coronavirus crisis. He sees Wayfair continuing to deliver strong earnings growth after the pandemic subsides, as it scales its revenue base and increases its operational efficiency.
Like many e-commerce companies, Wayfair benefited as consumers flocked to online shopping sites after COVID-19 forced many traditional retail stores to close. The question now is: How will Wayfair and other online retail platforms fare when shoppers eventually return to stores?
Khan clearly believes Wayfair will be just fine. CEO Niraj Shah apparently agrees. “As we look beyond the pandemic period, we are confident that our long-term orientation and years of investments should translate to compounding share gains and increasing profitability in a rapidly growing e-commerce market,” Shah said in Wayfair’s fourth-quarter earnings release.
If you agree as well, perhaps you should consider picking up some shares of Wayfair today.
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