Rising Star: Wayfair's Impressive Revenue Trends Catch Top Analysts' Attention

The home furnishings industry is seeing a shining star rise from the pandemic, as Wayfair Inc. W sets its sights on achieving breakeven or better EBITDA for the first time since 2020.

The online retailer's impressive revenue trends have caught the attention of top analysts, with a bevy of firms upgrading the stock, and their respective price targets on Monday.

Read on to hear what three analysts had to say.

Check out more analyst ratings, here.

Bank of America

BofA Global Research upgraded the Boston-based company to a buy rating and raised their price target from $30 to $65.

Curtis Nagle wrote in a note to investors Monday the biggest risks to Wayfair's positive outlook include the potential for recent sales momentum to fade in coming quarters; an uncertain macroeconomic environment; increased competition from major retailers such as Amazon and Home Depot; and continued weakness in international markets.

Wedbush

Wedbush Securities is equally bullish on the company's future, praising its strong cost-cutting actions and improving sales trends, which they believe set the stage for profitable growth in 2023 and beyond.

Analyst Seth Basham upgraded Wayfair from neutral to an outperform rating and raised the price target from $38 to $60.

Wayfair is forecasted to grow sales in 2023 due to its advantaged marketplace model and willingness to spend on advertising, Basham explained.

The company is also projected to reach break-even EBITDA as early as 2Q23 and has a potential for mid-single digit EBITDA margins in the medium-term.

JPMorgan Chase

JPMorgan Chase also sees a bright future for Wayfair, noting that the company is well positioned to capitalize on the longer-term shift of the home retail industry to online.

Christopher Horvers upgraded Wayfair to overweight and raised his price target to $63 from $35.

Wayfair remains "structurally relevant" in the home retailing space, noted Horvers. The company's ability to implement $1.4 billion in cost cuts and continue to improve revenue trends each month in Q4, positions it for success in the coming quarters and beyond."

Price action: Shares of Wayfair are trading 22.89% higher to $57.50, according to data from Benzinga Pro.