BUZZ-Wedbush downgrades Wayfair on tariff concerns, tepid growth expectations

Reuters
01-06
BUZZ-Wedbush downgrades <a href="https://laohu8.com/S/W">Wayfair</a> on tariff concerns, tepid growth expectations

** Wedbush downgrades online furniture retailer Wayfair W.N to "neutral" from "outperform"

** Brokerage sees limited room for Wayfair to re-accelerate slowing share gains in 2025; also notes downside risk from tariffs given company's high exposure to imports and a price-sensitive mass market customer base

** Despite easy comparisons (for home furnishings industry), "we expect slightly below trend growth due to a back-half weighted housing growth outlook, muted consumer confidence to buy big-ticket durables and downside risks from possible tariffs" - Wedbush analyst Seth Basham

** Wedbush adds luxury furniture retailer RH RH.N to its best ideas list on company's new gallery efforts, limited exposure to China and a more affluent customer base less impacted by inflation

** Wayfair stock fell 28% in 2024, while RH gained 35%

(Reporting by Juveria Tabassum in Bengaluru)

((Juveria.Tabassum@thomsonreuters.com))

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