UBS lowered its price target on Wayfair (NYSE: W) to $130 from $135 while maintaining a Buy rating.

The analyst stated that Wayfair's fourth-quarter results are expected to show the company operating from a position of relative strength, particularly as it continues to gain market share during the early stages of an industry recovery. However, concerns may persist regarding the company's ability to maintain comparable growth beginning in the second quarter of 2026.

Investors are also likely to focus on the scale of Wayfair's market share gains, which some perceive to have narrowed recently. Despite these concerns, UBS continues to see a compelling path to double-digit EBITDA growth, especially as the home furnishings market strengthens.

The firm believes that if Wayfair demonstrates the sustainability of this growth trajectory, both earnings estimates and the stock price could move higher in tandem.