Goldman Raises Price Target on Williams-Sonoma (WSM), Strong E-commerce Outlook
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Price: $279.53 -0.54%
Rating Summary:
9 Buy, 27 Hold, 7 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
Rating Summary:
9 Buy, 27 Hold, 7 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 17 | Down: 14 | New: 17
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Goldman Sachs is reiterating their Neutral rating on shares of Williams-Sonoma (NYSE: WSM) following their 4Q results and the release of their guidance, which both beat expectations. They are raising their price target on the company to $42 from $37.
The firm reports that the company will continue to experience ongoing sales strength as demand will remain high and their differentiated marketing.
The company is really focusing on the online business as they close more stores and find that people are shopping more e-commerce than ever. They are investing into the online system to a sure the ability of top performance.
WSM is raising their capex, hiking its dividend, and is buying back stock; and in the end, Goldman believes that they should still end 2011 with a higher cash balance. The firm is raising their 2011 EPS estimate by $0.02 to $2.22 due to the 4Q beat and guidance, but is raising their 2012 by $0.10 to $2.62 as they anticipate that WSM will recapture of some of that investment in their e-commerce, with continued growth in the online business. They are introducing their 2013 EPS estimate at $3.05.
Goldman comments that, "upside to our model was driven largely by expenses, and relatively little of the strategic color delivered on the quarter was new to the market. However, the potential for transition to a higher ROI model as the firm grows its e-commerce business and tapers its store base is relatively unique in retailing, offering potential for ongoing improvement in financial returns."
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 $39.38 yesterday.
The firm reports that the company will continue to experience ongoing sales strength as demand will remain high and their differentiated marketing.
The company is really focusing on the online business as they close more stores and find that people are shopping more e-commerce than ever. They are investing into the online system to a sure the ability of top performance.
WSM is raising their capex, hiking its dividend, and is buying back stock; and in the end, Goldman believes that they should still end 2011 with a higher cash balance. The firm is raising their 2011 EPS estimate by $0.02 to $2.22 due to the 4Q beat and guidance, but is raising their 2012 by $0.10 to $2.62 as they anticipate that WSM will recapture of some of that investment in their e-commerce, with continued growth in the online business. They are introducing their 2013 EPS estimate at $3.05.
Goldman comments that, "upside to our model was driven largely by expenses, and relatively little of the strategic color delivered on the quarter was new to the market. However, the potential for transition to a higher ROI model as the firm grows its e-commerce business and tapers its store base is relatively unique in retailing, offering potential for ongoing improvement in financial returns."
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 $39.38 yesterday.
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