Jefferies analyst Jonathan Matuszewski says his review of Wayfair's app downloads, engagement levels, and review sentiment show improvement since July. This is encouraging since the company's app design changes was one culprit of softer trends and because app users are three-times more valuable, Matuszewski tells investors in a research note. He believes that with Wayfair's fiscal 2020 enterprise value to sales multiple back to January levels, the market is not appreciating its total addressable market and "sustainable" U.S. profitability ahead. These warrant a premium multiple, says Matuszewski, who reiterates a Buy rating on the shares with a $188 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.