JP Morgan said Wayfair shares are cheap now, and the time has come to buy them. Analyst Christopher Howers upgraded the stock from underweight to overweight, citing improving market share trends and a better grip on expenses from management. Howers also raised the price target to $63 from $35. His new target is 34.6% higher than Friday’s closing price. “We are upgrading Wayfair from underweight to overweight, given the positive change in market share trend and management’s renewed commitment to controlling expenses/investments, which combined have moved from positive to negative over the past two years.” Should lead to a significant change in earnings revision. Still at the top of attractive valuations,” he said in a note to clients on Monday. The stock rose more than 7% in the premarket. The stock got a boost last week after Wayfair unveiled a cost reduction plan that includes a 10% workforce reduction. However, the analyst still sees significant upside beyond the jump. Wayfair is up 42.3% so far in 2023, making up some of its 82.7% decline in 2022. Hower said Wayfair remains relevant to home retailing because of its flagship assortment of products, even though it has a murky view of its position in the market. Wayfair should also feel tailwinds from improvements in availability and delivery speeds compared to a year ago. On top of that, he said the company has benefited from being able to avoid the hype environment that traditional retailers have had to contend with in recent months as they attempt to move inventory gluts. According to Howers, improving sales performance and the “new cost discipline” seen within management should help earnings revisions from a positive downward trend over the past two years. He added that the company has already reported improving sales trends in the fourth quarter. Howers said it’s a good time to consider buying Wayfair after the stock has burned off its post-Covid “excess” share price. He said that its price is almost 80% from the beginning of 2021 and 43% less than its pre-Covid price. The stock is trading at the low end of the enterprise-value-to-sell multiple, he added. — CNBC’s Michael Bloom contributed to this report.