Wayfair (W) could benefit from improving home furnishings demand, stronger internal programs, market-share gains, better margins and rising cash flow over the next few years, Oppenheimer said in a note Tuesday.

Oppenheimer expects Wayfair's sales to reach $16.1 billion in 2028 from an estimated $13.4 billion in 2026, while sales growth is expected to reach 10% in 2028 from 7% in 2026, helped by loyalty programs, expansion into higher-end products and a more stable industry environment.

The investment firm said it expects Wayfair to generate about $825 million in free cash flow in 2028, based on operating cash flow of $1.15 billion and capital spending of about $325 million.

Stronger cash generation could also give Wayfair more room to buy back shares after efforts to reduce higher-cost convertible debt, according to the note.

Oppenheimer kept an outperform rating and $144 price target for Wayfair, saying it sees the shares as undervalued and called Wayfair its preferred home-retail stock and a top pick in consumer growth and e-commerce coverage.

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