Wire
Wayfair Taking Share as Strategic Initiatives Pay Off, Morgan Stanley Says
Wayfair (W) seems to be taking share as the company's strategic initiatives are paying off, Morgan Stanley said in a note emailed Wednesday.Morgan Stanley said it sees "upside optionality" for the company as its initiatives in areas like the loyalty program, re-platforming of the tech stack, and investment in logistics are driving a "widening of its outperformance relative to the industry, while preserving gearing to an eventual recovery in housing turnover."Meanwhile, analysts said that the topline momentum is carrying through summer despite a more challenging macro environment. They also said that Wayfair saw an 8.9% growth in the US in Q2, higher than the expected 7% to 8% growth.Further, Wayfair's improving earnings quality, cash generation and cost discipline is supporting its goal to a 10% long-term adjusted EBITDA margin, Morgan Stanley said.Morgan Stanley kept Wayfair's overweight rating, while increasing the price target to $145 from $110.Price: $108.71, Change: $-7.37, Percent Change: -6.35%
$W