Wayfair has made “fundamental and sustainable” improvements that could benefit the stock after a wild ride this year, according to Citigroup. Citigroup upgraded the online furniture and décor stock to buy from neutral in a Monday note. It also raised its price target by $61 to $93 per share. The firm’s forecast implies about 27% upside from Monday’s close. Analyst Ygal Arounian said that much of the macroeconomic pressure that pushed Wayfair into the red for the year has largely waned — especially since President Donald Trump’s tariffs are being implemented at smaller levels than previously anticipated. Shares have are up more than 71% in 2025 in what has been a rollercoaster ride for the company. At one point, the stock was down 45.5% year to date on a closing basis. Since reaching those April levels, Wayfair has soared over 200%. W YTD mountain Wayfair stock in 2025. “We had downgraded to Neutral after initial tariff announcements and missed real upside, but still upgrade to buy as the tariff macro has been less of an impact than expected, execution has continued (we never doubted this), and Wayfair has demonstrated that it’s very well positioned to capture share amidst market disruption,” the analyst said. “In our view, this continues to be the case as it can better navigate tariffs/macro due to the nature of its marketplace, and be more price competitive,” Arounian added. The analyst also cited improvements to Wayfair’s Castlegate global logistics and supply chain network as an additional potential boon for the stock, as well as overall higher adoption. “Wayfair is also seeing structural improvements like more adoption (and new channels) for Castlegate, stronger growth in its higher-market brands and B2B []business-to-business], and physical retail,” the analyst said. “While the housing market has not been supportive, better trends, lower rates, and a refresh cycle can all support too.” Wayfair shares ticked higher on Tuesday after the rating change, while the broader market struggled.
