JPMorgan analyst Christopher Horvers downgraded Wayfair (W) to Underweight from Neutral with a price target of $63, down from $66. The analyst recommends selling the shares following the recent rally.

Wayfair's surge of revenue is unsustainable as competition normalizes and nesting slows on the "other side" of the COVID-19 pandemic peak, Horvers tells investors in a research note.

Further, the analyst is concerned about the "pending avalanche of promotions" when non-essential stores re-open, and he has open questions on Wayfair's need to reacquire customers, especially in a slower economy. He does not expect Wayfair to reach sufficient profitability in 2021 "for it to escape the trap of being valued on price-to-sales."