Stifel analyst Mark Kelley has adjusted his outlook on Wayfair (W, Financial), lowering the company's price target to $29 from a previous target of $46, while maintaining a Hold rating on the stock. The decision reflects growing concerns about the broader environment impacting digital advertising, e-commerce, marketplaces, and subscription services.
Despite advertising efforts performing better than anticipated, the firm foresees challenges ahead, leading to a comprehensive revision of estimates across various sectors. The firm highlights apprehensions about the slowing or potential decline in e-commerce and marketplace gross merchandise volume (GMV), citing consumer pressures due to rising prices.
Kelley expresses a heightened level of uncertainty regarding future projections, a sentiment not experienced since the early days of the COVID-19 pandemic. This discomfort points to a cautious outlook for Wayfair and similar firms navigating the evolving economic landscape.
