Bank of America upgrades Wayfair (NYSE:W) to a Buy rating from Neutral on its view the online retailer is well-positioned to grow in its home goods category with a large customer base, leading category selection and growing distribution network.
BofA notes Wayfair is also a beneficiary of the shift to in-home consumer purchasing along with Netflix, videogame sellers and Amazon.
“We see a positive risk reward with stock currently at 0.5X our 2021 revenue estimate, vs. a three-year hist. range of 0.2X to 1.5X,” notes the firm on a valuation check.
Shares of Wayfair are up 3.52% premarket to $74.02.