Williams-Sonoma (WSM) PT Raised to $170 but Morgan Stanley Sees the Setup as 'Tricky'

Morgan Stanley analyst Simeon Gutman raised the price target on Williams-Sonoma (NYSE: WSM) to $170.00 (from $160.00) but sees the setup as tricky.

The analyst reiterated an Equalweight rating, stating "valuation is undemanding and earnings power is holding up
better than expected. The market appears to be skeptical over the sustainability of sales and margins and we believe it is treating WSM similar to DKS and BBY with an expectation for category reversion. If and when demand slows, promotions may return, and this dynamic could drive downward (and perhaps pronounced) pressure on sales and margins. We think WSM is being valued as if this outcome is inevitable, and timing is the only unknown. Even if this expected reversion doesn't occur, we expect WSM's growth to inevitably slow and margins to level off, which isn't a great setup for any stock."

You May Also Be Interested In

• Williams-Sonoma (WSM) PT Raised to $260 at RBC Capital
• Nkarta Inc. (NKTX) PT Lowered to $10 at Stifel as Ntrust-1/2 Trial Enrollment Progresses
• Piper Sandler Reiterates Overweight Rating on Estee Lauder (EL), 'F4Q26 Preview'