Wayfair (W) - Get Wayfair, Inc. Class A Report was down 1.1% to $102.65 Tuesday after an analyst at Wolfe Research initiated coverage of the online home furnishings company with an outperform rating and a $145 price target.
Wolfe Research analyst Chris Bottiglieri said in a note to investors that the Boston-based company's customer retention remains at about two-thirds of the customer base "with increased customer visits suggesting a higher lifetime value of customer."
"The destination is to be the dominant online home retailer, and the path is amassing market share utilizing W's proprietary CastleGate WHs and Wayfair delivery network," he said.
Wayfair is expected to maximize sales in the short run to boost profits on a higher sales base in the long run. Bottiglieri also said he believes that Wayfair's fourth- quarter metrics support the global investments being made.
The company is scheduled to report third-quarter results on Oct. 31. Analysts are forecasting a loss of $2.07 a share. The company reported a year-earlier loss of $1.69 a share.
In August, Wayfair said its second-quarter net loss widened to $1.98 a share from $1.13 a year earlier. Adjusted losses were $1.35 a share against 77 cents.