Citi has revised its outlook for Wayfair (W, Financial), increasing the price target for the e-commerce giant to $30 from a previous $28, while maintaining a Neutral rating on the company's shares. This adjustment is part of a broader assessment of the internet sector ahead of the first-quarter results.
The decision to alter the price target comes as Citi adjusts its estimates to account for anticipated impacts from tariffs and a potentially weaker economic environment. These factors are expected to have significant implications for digital advertising and e-commerce, sectors that are considered to be highly exposed to these economic pressures.
However, Citi notes that companies like VeriSign (VRSN), Wix.com (WIX), Godaddy (GDDY), eBay (EBAY), and Criteo (CRTO) are likely to demonstrate resilience due to their robust fundamentals. Conversely, Wayfair (W, Financial), along with Trade Desk (TTD), Etsy (ETSY), and Bark (BARK), are identified as having greater exposure to tariff-related challenges.
