NEW YORK (TheStreet) -- Wayfair (W) - Get Report stock closed down 3.88% to $27.78 on Thursday despite Canaccord's price target raise to $36 from $34, and with an unchanged "buy" rating. 

"Wayfair saw improving efficiency from marketing efforts, with TV brand marketing and online ad spend leading to the acquisition of more valuable customers who are more likely to increase frequency and spend in the future," analysts said, adding that they continue to believe Wayfair is early in growing its presence in the nascent home goods eCommerce category. 

In its fourth quarter, Wayfair's direct retail revenue grew 55% year over year to $347 million, beating analysts estimates of $302 million.  

"Management commented that the greatest impact on the quarter came from better engagement, repeat behavior, and customer acquisition," Canaccord said. 

Wayfair's emphasis on holiday and seasonal product drove upside for the company, analysts said, adding that the home good e-tailer had 250k discounted target items, with 10k featured in gift guides, and 5% deeper savings than in the previous year. 

"Despite adding a record number of new customers in its fourth quarter of 2014, quarterly orders per active customer still increased 17% sequentially to 56 cents per share from 48 cents per share," Canaccord noted.   

The firm increased its 2015 fiscal year revenue estimates to $1.7 billion from $1.6 billion. 

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