Canaccord Genuity Maintains a 'Buy' on Williams-Sonoma (WSM); Sales Momentum and Valuation Doesn't Even Reflect...

Canaccord Genuity maintains a 'Buy' on Williams-Sonoma (NYSE: WSM) price target of $55.00.

Analyst, Laura Champine, said, "WSM reported Q2 EPS of $0.43, $0.02 ahead of our estimate, consensus, and the high end of guidance. Comparable brand revenues (including DTC sales) increased 7% on top of +7%. We had forecast +6%. Pottery Barn sustained momentum generating comparable brand revenue +12% on top of +3%. WSM’s gross margin expanded 35bps yr./yr., better than our estimate of a 40bps decline. This was partially offset by a 20bps increase in the SG&A rate as a result of investments in e-commerce, global expansion, and growth initiatives. We had forecast 35bps of leverage...We don’t believe WSM’s current valuation reflects the growth potential of the e-commerce business."

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 $38.23 yesterday.

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