11:19 AM EDT, 08/05/2025 (MT Newswires) -- Wayfair ( W ) is expected to carry its Q2 momentum into H2, supported by its asset-light business model and past supply chain investments that boost prospects for further market share gains, Morgan Stanley said Tuesday in a report.

The company is prioritizing the "right initiatives" to create long-term value and is efficiently managing tariff challenges, Morgan Stanley said. An improving net sales growth trajectory and reduced e-commerce competition bolstered Q2 results, the report said.

Morgan Stanley raised its revenue growth estimates to 3.3% in 2025 and 4.4% in 2026 and increased its forecasts for adjusted earnings before interest, taxes, depreciation, and amortization.

Wayfair ( W ) "plays to its strengths with strong order conversion, favorable mix and solid incremental margins driving revenue and adjusted EBITDA upside," the report said.

Morgan Stanley raised its price target on Wayfair ( W ) stock to $105 from $70 and reiterated its overweight rating.

Price: 73.79, Change: +0.31, Percent Change: +0.42