Loop Capital analyst Laura Champine kept her Buy rating and $140 price target on Wayfair after its Q2 earnings report, saying the outlook for weaker Q3 margin from rising headcount expectations has no bearing on her positive outlook for the company. The analyst reiterates that Wayfair's pricing is competitive, and the company remains aggressive in advertising, making its early mover advantage in home furnishing sustainable. Champine contends that Wayfair's current valuation of 1.5-times enterprise value to expected FY18 revenue is attractive for long-term investors.

Bullish option flow detected in Wayfair with 10,218 calls trading, 1.2x expected, and implied vol increasing almost 4 points to 81.40%. May-24 60 puts and Sep-24 60 calls are the most active options, with total volume in those strikes near 3,800 contracts. The Put/Call Ratio is 0.64. Earnings are expected on May 2nd.

TD Cowen raised the firm's price target on Wayfair to $55 from $50 and keeps a Hold rating on the shares. The firm said they expect the company to report revenue and EBITDA slightly below current consensus estimates when it reports earnings.