UPDATE: RBC Capital Upgrades Williams-Sonoma (WSM) to Outperform

January 27, 2022 4:09 PM EST
Get Alerts WSM Hot Sheet
Price: $108.15 -3.73%

Rating Summary:
    11 Buy, 23 Hold, 8 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 3 | Down: 7 | New: 18
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(Updated - January 27, 2022 4:13 PM EST)

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."

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 $149.80 yesterday.

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