UPDATE: RBC Capital Upgrades Williams-Sonoma (WSM) to Outperform
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RBC Capital analyst Steven Shemesh upgraded Williams-Sonoma (NYSE: WSM) from Sector Perform to Outperform with a price target of $202.00 (from $219.00).
The analyst comments "We are upgrading WSM shares to Outperform. The current 11x P/E multiple is what initially piqued our interest, but after a thorough review of the Company’s fundamentals, we believe investors are underappreciating the name’s top-line potential. Importantly, we believe there is enough top-line flex to comfortably deliver on consensus EPS even if margins are modestly weaker than expected. Out of an abundance of caution, we are lowering our assigned P/E multiple to 14x - in line with the Company's historical average (which we feel is very conservative given a more favorable top-line/margin outlook). This lowers our PT from $219 to $202, but still implies ~29% upside from current levels."
Shares of Williams-Sonoma closed at $149.80 yesterday.
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