Wayfair (NYSE: W) shares surged 5.75% in intraday trading on Friday, as investors reacted positively to the company's first-quarter 2025 earnings report and subsequent analyst commentary.

The online home goods retailer reported flat year-over-year net revenue for Q1, with a 10.9% decline in the international segment offset by a 1.6% growth in the US business. Despite the challenging economic environment, Wayfair managed to improve its profitability, reporting an adjusted EBITDA of $106 million, representing a 3.9% margin on net revenue.

Following the earnings release, several analysts adjusted their price targets for Wayfair stock, reflecting mixed sentiment. While some firms lowered their targets, others maintained their Buy ratings, suggesting confidence in the company's long-term prospects. Truist Financial, for instance, raised its target to $40 from $36, maintaining a Buy rating. The maintained Buy ratings from some analysts, despite price target reductions, indicate a belief in Wayfair's ability to navigate current market challenges and capitalize on future growth opportunities.