Wayfair Inc (NYSE:W), scheduled to report its third-quarter results on Tuesday, is “a tariff winner," according to JPMorgan.
The Wayfair Analyst: Analyst Christopher Horvers maintained an Overweight rating, while raising the price target from $82 to $105.
The Wayfair Thesis: Channel checks indicate the company generated U.S. revenue growth of 6%, taking total revenues up 4.7%, ahead of the Street's expectations of 5% and 4.3%, respectively, Horvers said in the note.
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He added that Wayfair is likely to announce adjusted EBITDA of around $172 million, with margins of 5.7%, beating consensus estimates of $164 million and 5.4%.
"Indeed, we are also increasing our 4Q forecasts to +4% US revenue (+2.9% total revenue) vs. the Street's +3.2% US/+3.1% total per Consensus Metrix on expectations of ongoing strength, with $189MM EBITDA (5.9% margin) above the Street's $166MM (5.2% margin)," the analyst wrote.
W Price Action: Shares of Wayfair had risen by 4.01% to $86.42 at the time of publication on Monday.
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