Berenberg slashes price target on Wayfair Inc. [W] – find out why.

Wayfair Inc. [NYSE: W] stock went on an upward path that rose over 3.82% on Tuesday, amounting to a one-week price increase of more than 5.49%. The company report on August 12, 2020 that Wayfair Inc. Prices Offering of $1.32 Billion Convertible Senior Notes.

Wayfair Inc. (NYSE: W) (the “Company,” “we” or “Wayfair”) announced today the pricing of $1.32 billion aggregate principal amount of 0.625% convertible senior notes due 2025 (the “notes”) in a private offering (the “offering”) to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The offering was upsized from the previously announced offering of $1.2 billion aggregate principal amount of notes. In connection with the offering, the Company granted the initial purchasers an option to purchase, within a 13-day period beginning on, and including, the initial issuance date of the notes, up to an additional $198 million aggregate principal amount of notes.

The notes will bear interest at a rate of 0.625% per year, payable semi-annually in arrears on April 1 and October 1 of each year, beginning April 1, 2021. The notes will mature on October 1, 2025, unless earlier redeemed, repurchased or converted in accordance with their terms. Prior to July 1, 2025, the notes will be convertible only upon satisfaction of certain conditions and during certain periods. Thereafter, the notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The Company may not redeem the notes prior to October 4, 2022. On or after October 4, 2022, the Company may redeem for cash all or part of the notes if the last reported sale price of the Company’s Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including at least one of the five trading days immediately preceding the date on which the Company provides notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption. The redemption price will equal 100% of the principal amount of the notes being redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.

Over the last 12 months, W stock rose by 191.00%. The one-year Wayfair Inc. stock forecast points to a potential downside of -6.76. The average equity rating for W stock is currently 2.60, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $31.54 billion, with 94.83 million shares outstanding and 63.32 million shares in the current float. Compared to the average trading volume of 2.46M shares, W stock reached a trading volume of 3283761 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on Wayfair Inc. [W]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for W shares is $305.46 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on W stock is a recommendation set at 2.60. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Berenberg have made an estimate for Wayfair Inc. shares, keeping their opinion on the stock as Sell, with their previous recommendation back on August 12, 2020. While these analysts kept the previous recommendation, DA Davidson raised their target price from $100 to $260. The new note on the price target was released on August 06, 2020, representing the official price target for Wayfair Inc. stock. Previously, the target price had yet another raise to $321, while Barclays analysts kept a Equal Weight rating on W stock. On August 03, 2020, analysts increased their price target for W shares from 275 to 300.

The Average True Range (ATR) for Wayfair Inc. is set at 16.87, with the Price to Sales ratio for W stock in the period of the last 12 months amounting to 2.75. Price to Free Cash Flow for W in the course of the last twelve months was 62.45 with Quick ratio for the last quarter at 1.20.

W Stock Performance Analysis:

Wayfair Inc. [W] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 5.49. With this latest performance, W shares gained by 41.86% in over the last four-week period, additionally plugging by 304.44% over the last 6 months – not to mention a rise of 191.00% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for W stock in for the last two-week period is set at 73.97, with the RSI for the last a single of trading hit 75.64, and the three-weeks RSI is set at 72.89 for Wayfair Inc. [W]. The present Moving Average for the last 50 days of trading for this stock 235.94, while it was recorded at 313.24 for the last single week of trading, and 131.68 for the last 200 days.

Insight into Wayfair Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Wayfair Inc. [W] shares currently have an operating margin of -10.19 and a Gross Margin at +21.42. Wayfair Inc.’s Net Margin is presently recorded at -10.79.

Return on Total Capital for W is now -88.83, given the latest momentum, and Return on Invested Capital for the company is -99.16. Additionally, W Total Debt to Total Capital is recorded at 166.23, with Total Debt to Total Assets ending up at 80.25.

Reflecting on the efficiency of the workforce at the company, Wayfair Inc. [W] managed to generate an average of -$57,968 per employee. Receivables Turnover for the company is 73.56 with a Total Asset Turnover recorded at a value of 3.77.Wayfair Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.20 and a Current Ratio set at 1.30.

W Stock EPS

With the latest financial reports released by the company, Wayfair Inc. posted -2.23/share EPS, while the average EPS was predicted by analysts to be reported at -2.1/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -6.20%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for W. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Wayfair Inc. go to 14.00%.

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