12:08 PM EDT, 05/13/2024 (MT Newswires) -- Wayfair ( W ) continues to take share in a bottoming home furnishings industry and is poised to grow faster when the industry recovers, Morgan Stanley said in a note Monday.

"The investment story on Wayfair ( W ) is strengthening in our view," Morgan Stanley said. "We believe Wayfair's ( W ) multiple can expand as it demonstrates higher earnings before interest, taxes, depreciation and amortization, and margins."

Wayfair's ( W ) Q1 US sales decline of 1% and Q2 guidance of flattish to positive total sales growth versus the home furnishings industry declining high-single to low-double digits shows "Wayfair ( W ) is taking meaningful share and is poised to grow faster when the industry turns," Morgan Stanley said.

The investment firm raised its price target on Wayfair ( W ) to $90 from $85 and kept its overweight rating.

Price: 74.12, Change: +3.40, Percent Change: +4.81