Wedbush Downgrades Williams-Sonoma (WSM) to Neutral

Wedbush analyst Seth Basham downgraded Williams-Sonoma (NYSE: WSM) from Outperform to Neutral with a price target of $135.00 (from $150.00).

The analyst comments "We move to the sidelines on WSM ahead of 3Q24 earnings in mid-November. While WSM seemingly de-risked its outlook when it reduced FY24 guidance in conjunction with 2Q24 results, we now believe that trends have deteriorated in recent months despite easier comparisons (Figure 2). WSM’s 3Q malaise can be partly attributed to its heavier seasonal mix of furniture sales (which should reverse in 4Q), but we are more concerned that market share gains could prove more difficult in the coming quarters, the industry’s recovery is being pushed out, margin expansion opportunities are more limited (especially in this more variable cost business model), and potential additional tariffs are a risk."

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 $132.47 yesterday.

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