Sterne Agee CRT Starts Wayfair (W) at Neutral

Sterne Agee CRT initiates coverage on Wayfair (NYSE: W) with a Neutral rating, saying the risk/reward is balanced.

Analyst Arvind Bhatia commented, "We are initiating coverage of Wayfair, Inc. with a Neutral rating as we see risk-reward balanced at current levels. We are bullish on the secular shift in the “home” goods category from offline to online and intrigued by the significant market share W is taking. Additionally, the international opportunity, which W is just beginning to address, doubles its TAM. However, comps get tougher starting in 2Q and the magnitude of potential upside surprises is likely to be lower than recent history. As well, planned significant international investments have pushed the profitability timeline by at least a year, once again fueling the bear thesis that points to W’s thin margins and questions its ability to generate substantial profits long term."

For an analyst ratings summary and ratings history on Wayfair click here. For more ratings news on Wayfair click here.

Shares of Wayfair closed at $41.76 yesterday.

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