Bernstein Upgrade of Wayfair to Outperform
Bernstein has upgraded Wayfair Inc. (NYSE: W) to Outperform from Market‑Perform and increased its price target to $125, up from the prior $100 target. The new target represents approximately 24 % upside relative to Wayfair’s closing price of $101.13 on 13 August 2026.
The brokerage cites stronger revenue growth and improving operating leverage following Wayfair’s second‑quarter results. It notes that Wayfair’s U.S. business is delivering high‑single‑digit revenue growth despite a largely stagnant furniture market, driven by premium brands, stronger buyer growth and higher order volumes.
Bernstein projects a path to 10 % revenue growth in 2027 and 2028, which exceeds the Street’s consensus expectation of 7 % growth. To reflect this outlook, the firm raised its 2027 and 2028 revenue estimates by 8 % and now expects a roughly 10 % compound annual growth rate over the next two years.
Adjusted EBITDA margins are expected to improve by about 30‑40 basis points versus previous estimates, and the adjusted EBITDA forecasts for 2027 and 2028 have been increased by 13 %. Bernstein forecasts adjusted EBITDA of nearly $1.1 billion in 2027 and $1.3 billion in 2028, which are 4 % and 9 % above consensus estimates respectively. The brokerage believes Wayfair can maintain a contribution margin above 15 % while keeping fixed costs in check, providing significant operating leverage as revenue expands.
Key risks identified by Bernstein include a potential slowdown in revenue growth, intensified competition from Amazon and Walmart, further gross‑margin pressure, and the possibility that artificial‑intelligence developments could disrupt online marketplaces.