Bernstein Société Générale has reaffirmed its Outperform rating on Wayfair and is forecasting growth through 2027 above market expectations. Against the backdrop of trends in the U.S. e-commerce market, the firm highlighted Wayfair’s growth drivers and expected revenue growth next year.
Wayfair’s share price has attracted investor attention after Bernstein upgraded the company back to an Outperform rating. Bernstein forecasts consolidated revenue growth of approximately 10% for Wayfair next year and growth of approximately 11% in its U.S. business, indicating that both would be well above the market consensus forecast of 7.5%.
The firm cited Wayfair Rewards, expansion of physical stores and continued improvements to the shopping experience as company-specific growth drivers, expressing the view that Wayfair could outperform even if market conditions as a whole remain weak. It also noted that current Street estimates are not particularly high.
According to earnings-related data, Wayfair’s second-quarter revenue rose 7.5% year on year to approximately $35.3 billion, while the U.S. segment increased by approximately 9%, accelerating its growth rate. Active customers increased by more than 3% and orders rose 6%. The luxury brand Perigold grew by more than 35% during the quarter, while the adjusted EBITDA margin was 6.9% and free cash flow increased by approximately $30.1 million as customer loyalty expanded and investment in physical stores progressed.
Bernstein also said that Wayfair has room for upward revisions if it delivers results around the midpoint of current analyst estimates. Given that the company is modeling double-digit growth through 2027, the firm said investors should watch for further updates.