Online furniture and home-accessories retailer Wayfair (W) - Get Report on Thursday received an upgrade from Stifel Nicolaus, which sees the company's stock as undervalued at current levels following a post-earnings downturn earlier this month.
In a research note to clients, Stifel Nicolaus analyst Scott Devitt upgraded Wayfair to buy from hold, saying the 12% drop in the company's stock price since the release of its second-quarter results has created a compelling entry point.
The quarter was "complicated by very heavy investment in its international operations," which offset the beginnings of a more positive ramp-up of its U.S. business, Devitt said, noting that the U.S. business now trades at a 25% discount to the company's e-commerce peers.
Devitt kept his 12-month stock price target unchanged at $150.
Shares of Wayfair declined after the Boston-based online home-furnishings company posted a second-quarter net loss wider than a year earlier but in line with analysts' expectations.
The company's stock was up 3.29% at $118.85 in early trading on Thursday.
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