Wedbush Upgrades Williams-Sonoma (WSM) to Outperform; Valuation Provides Buying Opportunity

Wedbush upgraded Williams-Sonoma (NYSE: WSM) from Neutral to Outperform. PT raised from $44 to $46.

Wedbush analyst says, "Valuation attractive after stock has retreated on what we believe are overdone investor concerns regarding promotional activity and slowing growth (conservative guidance). Since reporting Q1 EPS on May 25th, the stock price is off about 15% from its 52-week high of $45 and is currently trading at 15.0x our 2012 EPS estimate of $2.55, which is below the 5-year historical median P/E of 17.6x forward earnings. Historically, the company has traded at a valuation that represents a premium to its growth rate given its status as a world-class retailer with an enviable multi-distribution channel platform, as well as a strong balance sheet and cash flows. We believe the stock should continue to trade at a premium valuation for several reasons."

For more ratings news on Williams-Sonoma click here and for the rating history of Williams-Sonoma click here.

Shares of Williams-Sonoma closed at $38.57 yesterday.

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