Deutsche Bank analyst Kunal Madhukar says shares of Wayfair were down last night after the company disclosed that its COO and the CTO were leaving the company. However, the analyst does not think the transitions signal a change in Wayfair's underlying business fundamentals. As such, the share weakness has created a buying opportunity, Madhukar tells investors in a research note. While the overall market appears to have slowed down, partly because of the tariffs, Wayfair will be among the beneficiaries as the new macro environment and intensifying competitive landscape could result in eroding profitability and accelerated store closings for the smaller traditional retailers, says Madhukar. He reiterates a Buy rating on the shares with a $175 price target.

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.