Citi analyst Nicholas Jones downgraded Wayfair to Sell from Neutral with a price target of $130, up from $75.

The stock closed Thursday down $10.86 to $172.94.

Despite estimates moving higher on better than anticipated trends, Wayfair shares are overvalued, Jones tells investors in a research note. Though the retailer is seeing a near-term benefit from shelter-in-place and social distancing measures, trends will revert to that of a pre-COVID environment, contends the analyst. Long term, Jones believes the adoption of online channels will likely have increased. However, the cost to maintain order volume will also increase back to pre-COVID levels, pressuring Wayfair's profitability, says the analyst.