Williams-Sonoma (WSM) Sell-Off Post Q2 an 'Over-Reaction', BofA/Merrill Lynch Says

With shares trading down over 10% following Q2 results, BofA/Merrill Lynch is reiterated a Buy rating and $82 price target on Williams-Sonoma (NYSE: WSM) calling the sell-off an over-reaction related to 1) a lower GM (although EBIT margin was +26bp) caused by a more promotional environment and occupancy deleverage for global retail and domestic distribution and 2) lack of a guid raise for the first time in several years.

"We view this as an attractive opportunity in a high-quality retailer with unrivalled e-commerce leadership and reiterate our $82 PO," analyst Denise Chai stated.

The firm adjusted FY 2015 EPS from $3.24 to $3.20, FY 2016 EPS from $3.74 to $3.70 and FY 2017 EPS from $4.35 to $4.28.

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 $74.89 yesterday.

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