Wedbush Reiterates an 'Outperform' on Williams-Sonoma (WSM); Number of Significant Positives

November 20, 2009 9:21 AM EST

Wedbush reiterates an Outperform rating on Williams-Sonoma (NYSE: WSM), price target increased from $20 to $26.

Wedbush analyst says, "Reiterate Outperform based on a number of significant positives including 1) a return to comp growth, 2) improved customer response, 3) strong momentum into the holidays, and 4) streamlined supply chain. Q3 pro forma EPS of $0.16 vs. ($0.10) was significantly better than our consensus estimate of $0.05 and guidance for EPS of $0.01-$0.05...Solid Q3 results were driven by better merchandise margins, catalog optimization, and supply chain initiatives...Guidance raised to Q4 EPS of $0.36-$0.45 (from $0.27-$0.36) on comps of (1%)-4% (from (11%)-(6%)) vs. our/consensus of $0.38...Raising our forecast for Q4 EPS to $0.44 (from $0.38) on comps of +3.5% (from -5.0%)...Raising our price target to $26 which assumes WSM should trade at 8.5x our revised EV/2010 EBITDA forecast of $310 million."

To see all the upgrades/downgrades on shares of WSM, visit our Analyst Ratings page.

Williams-Sonoma, Inc. operates as a specialty retailer of home products.

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