Wayfair shares soar after the stock receives an upgrade from Piper Sandler to "overweight" from "neutral" and a raised price target to $97 from $35. Yahoo Finance Live breaks down the reasons for the upgrade.
Video Transcript
Let's talk about Wayfair as well. The stock got a big upgrade from Piper Sandler this morning. And it's now higher. It was much higher, actually, up by more in pre-market trading. Now, it's only up by about 2%. This says Piper Sandler is raising its rating to overweight from neutral. Its price target getting a big boost, all the way up to $97 from $35 previously, citing improving sales and share gains.
And we have that note from the analyst over there, Peter Keith, who says overall, the home furnishings industry does seem to be stabilizing and that a supplier feedback on the company has been become the most positive in more than two years.
- Yeah. Significant move year-to-date for Wayfair. And it's all the more noticeable, given the environment that Wayfair is in right now. And many of the home furnishing companies that are still looking to see when consumer demand for some of their products and for some of those SKUs that they're trying to work through-- when that will shift. You've had a lot of changeover within this industry though, over the course of even the past few weeks, with Overstock.com purchasing the intellectual property of Bed, Bath and Beyond.
We'll see what further changes are to come from that. How that also shifts the consumer perception of this industry too, as it seems like a period of discounting could still be very much in the cards, at least for this near term period of time as they're trying to both work through inventory.
And at the same time, make sure that they're continuing to engage with consumers that have pulled back some of that discretionary spending on home furnishings, as evidenced through the most recent earnings results from companies like Target and Walmart who have cited that category specifically as some of the low or lackluster areas.
- Yeah. And the analyst over here also pointing out that the stock is still cheap versus pre-COVID levels. That's one of the other reasons that he's looking at this stock. You mentioned Overstock as well as another barometer in this industry. We're going to be speaking to CEO Jonathan Johnson tomorrow about this whole-- among other things, about the transition in the brand name there.
So we'll see how they are stacking up against the likes of Wayfair, and whether he is seeing some of the similar trends that this Piper Sandler analyst is seeing when it comes to Wayfair.
