Baird boosts Wayfair target to $73 after positive preannouncement

Baird analyst Colin Sebastian raised the firm's price target on Wayfair to $73 from $67 and keeps an Outperform rating on the shares. The retailer this morning confirmed a surge in demand and likely Q1 outperformance as consumers stay at home, bricks-and-mortar stores close, and online competitors such as Amazon (AMZN) focus on food and other consumable retail categories, Sebastian tells investors in a research note. Further, Wayfair is strengthening its balance sheet with a new $535M convertible senior note, which should help to alleviate recent liquidity concerns, adds the analyst. Sebastian believes Wayfair benefiting significantly from the work-from-home trend and competitor disruptions and keeps an Outperform rating on the shares.