Wedbush Downgrades Williams-Sonoma (WSM) & Lowers Numbers; Promotions on National Brands Not Likely to Go Away
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Price: $55.59 +1.15%
Rating Summary:
11 Buy, 15 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
Rating Summary:
11 Buy, 15 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 21 | Down: 43 | New: 13
Trade WSM Now!
Wedbush downgraded Williams-Sonoma (NYSE: WSM) from Outperform to Neutral, price target lowered from $43 to $35.
Wedbush analyst said, "Downgrading to NEUTRAL given promotions on national brands are not likely to go away. We acknowledge this risk pertains mostly to the core W-S concept, and that concept does about 50% of its business in Q4. Nevertheless, we believe this incremental gross margin pressure leaves little room for error regarding the performance of the merchandise assortment for the company’s successful proprietary home furnishings brands. This unexpected news has resulted in a revaluation of the stock and potentially negative sentiment could persist, especially since 2012 guidance will not be provided until March, which we expect to be conservative. While we have great appreciation for the company’s multi-channel platform and longer-term investments in E-C and international, we do not see any near-term meaningful catalysts to move the stock higher."
"Reducing our 2012 EPS forecast to $2.35 (from $2.55). We are also reducing our Q4 EPS forecast to $1.10 (from $1.20) on comps of 1.5% (from 3.5%)."
For an analyst ratings summary and ratings history on Williams-Sonoma click here. For more ratings news on Williams-Sonoma click here.
Shares of Williams-Sonoma closed at $34.32 yesterday, with a 52 week range of $27.90-$45.48.
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Wedbush analyst said, "Downgrading to NEUTRAL given promotions on national brands are not likely to go away. We acknowledge this risk pertains mostly to the core W-S concept, and that concept does about 50% of its business in Q4. Nevertheless, we believe this incremental gross margin pressure leaves little room for error regarding the performance of the merchandise assortment for the company’s successful proprietary home furnishings brands. This unexpected news has resulted in a revaluation of the stock and potentially negative sentiment could persist, especially since 2012 guidance will not be provided until March, which we expect to be conservative. While we have great appreciation for the company’s multi-channel platform and longer-term investments in E-C and international, we do not see any near-term meaningful catalysts to move the stock higher."
"Reducing our 2012 EPS forecast to $2.35 (from $2.55). We are also reducing our Q4 EPS forecast to $1.10 (from $1.20) on comps of 1.5% (from 3.5%)."
For an analyst ratings summary and ratings history on Williams-Sonoma click here. For more ratings news on Williams-Sonoma click here.
Shares of Williams-Sonoma closed at $34.32 yesterday, with a 52 week range of $27.90-$45.48.
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