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Mizuho projected that a one-year delay in tariff increases could propel shares of Wayfair higher. The bank maintained its outperform rating on the e-commerce furniture seller. Analyst David Bellinger’s price target of $130 implies upside of 29% from where shares of Wayfair closed on Wednesday. The stock has surged 118% over the last 12 months. W 1Y mountain W 1Y chart Bellinger said a catalyst was the Trump administration’s move earlier this week to delay increasing certain tariff rates by one full year to next January. The analyst said that these delays were due to “productive negotiations” with various trade partners. “Tariffs of 25% will remain in place for upholstered furniture (instead of going to 30%), with kitchen cabinets and vanities also holding at 25% (instead of notching to 50%). We view this update as giving some breathing room for the sector and for Wayfair,” the analyst wrote. “Overall, structural changes within the business are accelerating share gains and tariffs are allowing the big to get bigger,” he wrote. “We therefore envision another leg higher for shares with lighter tariffs a positive.” Bellinger also applauded Wayfair’s marketplace model, which he says has absorbed pricing well, has flexible product sourcing and has successfully avoided direct margin pressure. Shares were up 5% in morning trading.
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