Wayfair Gets Price Target Hike From Citi Amid Minimal Tariff Effects On Demand

Citigroup noted that price increases for tariffs are beginning, but are having a limited impact on demand at Wayfair.

Wayfair (W) shares rose over 1% in premarket trading on Monday after Citigroup raised its price target on the furniture retailer to $105 from $93, citing that it has a “higher confidence” in the company’s ability to achieve the target set.

Citigroup maintained a ‘Buy’ rating, according to TheFly. The firm noted that it has confidence in its estimates for Wayfair following an advisor call on home furnishing industry trends.

Price increases for tariffs are beginning but are having a limited impact on demand, according to Citigroup. It added that it sees strong competitive advantages for Wayfair.

Last week, U.S. President Donald Trump stated in a post on Truth Social that he would impose substantial tariffs on any company that does not manufacture its furniture in the United States.  Trump announced the imposition of new tariffs, which included a 10% levy on imported timber and lumber, as well as a 25% duty on kitchen cabinets, bathroom vanities, and upholstered furniture. 

This move could potentially impact furniture retailers such as Wayfair, Williams-Sonoma, and Arhaus. Wayfair relies on China and Vietnam for importing its products into the United States and has been trying to minimize the impact by deferring price increases.  

In September, JPMorgan analyst Christopher Horvers placed shares of Wayfair on "Positive Catalyst Watch" on expectations of upward estimate revisions over the coming quarters. He noted that solid wage growth, rising replacement cycles, and positive existing home sales should drive upside to consensus estimates for the home goods retailers.

Wayfair shares have nearly doubled this year and gained more than 50% in the last 12 months.

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