Bull Notes Lift Wayfair, Etsy Stocks Before Earnings

Most analysts are still bearish on both stocks, however

Josh Selway
Feb 20, 2018 at 10:15 AM
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Shares of Wayfair Inc (NYSE:W) and Etsy Inc (NASDAQ:ETSY) have outperformed over the past year, and analysts are expecting more upside ahead as both companies prepare to report earnings over the next week. Let's take a quick look at W and ETSY stocks today, and how Wall Street is gearing up for the upcoming quarterly updates.

Wayfair Hits New High After Price-Target Hikes

Wayfair this morning saw its price targets increased to $100 at BofA-Merrill Lynch and to $98 at Wedbush. As such, the stock is trading up 1.5% at $98.94, earlier touching a record high of $99.44. The shares were already up 143% over the past year coming into today, with a recent pullback contained by the 20-day moving average, a trendline that's only been breached once on a closing basis since mid-November.

Still, there's plenty of negativity remaining in the analyst community. Of the 18 brokerage firms in coverage, half still consider the stock just a "hold." Plus, the average 12-month price target sits all the way down at $88.85. Taken together, this would seem to suggest additional bull notes could be coming down the pike for the e-commerce issue.

It will help if the company announces a strong quarter when it reports earnings Thursday morning. Last quarter, however, the shares fell 15.5% in the session after earnings.

Etsy Analysts Mostly Skeptical Before Earnings

As for Etsy, D.A. Davidson this morning upped its price target to $26 from $20 -- territory the stock hasn't explored since right after its initial public offering (IPO) back in April 2015. So far today, ETSY is up 2.2% at $21.43, putting it within striking distance of its Dec. 21 peak of $21.86. The equity has outperformed over the past year, adding roughly 66%.

But most analysts remain bearish. In fact, just three of the 11 brokerage firms in coverage recommend buying the shares, and the stock is now trading above its average 12-month price target of $19.07. As such, it could also see more bull notes in the near future. The company is slated to report earnings after the close next Tuesday, Feb. 27. Last quarter, Etsy stock fell 1.7% the day after earnings.


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