Furniture and home goods retailer Wayfair has several “green shoots” to power the stock higher, according to Jefferies. The firm upgraded shares to buy from hold in a Friday note, in addition to notching up its target price by $2 to $47. The new price target suggests shares rallying 42% from where they closed on Thursday. Shares are trading at the levels seen right after Covid-19 was declared a global pandemic in 2020 — even though Wayfair is 30% larger, with EBITDA nearly 10% higher, per analyst Jonathan Matuszewski. “With top-tier market share gains, a new paid loyalty program, compelling B2B traction, and underrated physical retail expansion, we have fresh optimism for EBITDA growth above the Street,” Matuszewski said. “We believe W’s current multiple overemphasizes lackluster industry growth and fails to appropriately credit consistent share gains.” Matuszewski added that year-over-year increases in existing home sales indicates a recent housing momentum in the U.S.— which he expects will result in a tailwind as demand for home goods increases. Wayfair’s newly-launched paid loyalty program is a driver of EBITDA margins even if home sales stall, according to the analyst. Shares popped more than 3% in the premarket after the upgrade. The stock is trading more than 25% lower year to date, and it’s down 44.7% over the last 12 months. W YTD mountain Wayfair in 2025 Analysts are split on the stock. LSEG data shows that 16 of 36 rate it as a buy or strong buy, while the remaining 20 have a hold rating.
