Wayfair(W:NYE) Argus raises target on retail closings and increase in online shopping

STA Research
by: STA Research

Argus analyst Jim Kelleher raised his target on Wayfair to $360 from $225 and maintained his Buy rating on the stock. Kelleher believes that the continued closure of retail outlets and the continued push to online shoppping as a consequence of the pandemic, will drive Wayfair’s sales growth.  The analyst believes the valuation is still attractive amid the recent stock appreciation, and pegs the company’s growth rate at 25 percent.

STA Research(stocktargetadvisor) has a average target on Wayfair for $222.50 and a consensus Buy rating.  STA’s view of the stock is Neutral with a score of 5 out of 10, where 0 is very bearish and 10 very bullish.

 

What to like:
High market capitalization
This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.
High Gross Profit to Asset Ratio
This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

 

What to not like:
Negative cashflow
The company had negative total cash flow in the most recent four quarters.
Low Earnings Growth
This stock has shown below median earnings growth in the previous 5 years compared to its sector

 

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