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Investing.com - UBS raised its price target on Williams-Sonoma (NYSE:WSM) to $184.00 from $160.00 while maintaining a Neutral rating on the stock. The home furnishings retailer has demonstrated impressive momentum, posting a 53.5% return over the past year. According to InvestingPro data, the stock is currently trading above its Fair Value, with analysts’ targets ranging from $130 to $215.
The firm expects Williams-Sonoma’s second-quarter results to show healthy sequential improvement in comparable sales growth compared to the first quarter’s 3.4% increase. UBS forecasts a 4.0% comparable sales increase for the second quarter, above the consensus estimate of 2.4%. With earnings scheduled in 6 days, investors should note that Williams-Sonoma has maintained strong financial health, with InvestingPro analysis showing 19 consecutive years of dividend increases and robust profitability metrics.
UBS noted that market expectations have risen in recent weeks, with investors now anticipating mid-single digit comparable growth in the second quarter and similar growth rates continuing into the third quarter.
The research firm identified recovering demand for home furnishings and the potential for an interest rate cutting cycle later this year as positive factors for Williams-Sonoma. However, UBS also highlighted potential challenges from tariffs that could create cost and unit pressure in upcoming quarters.
UBS raised its price target as it rolled forward its valuation basis to 2027 estimated earnings per share, while maintaining that the near-term risk-reward for Williams-Sonoma remains "modestly favorable."
In other recent news, Williams-Sonoma has seen several analyst firms adjust their price targets and ratings. RBC Capital raised its price target for Williams-Sonoma to $212 from $182, maintaining an Outperform rating. The firm cited strong transaction data and positive peer indicators, increasing its second-quarter comparable sales estimate to 3.6% growth, surpassing the consensus of 1.9%. Barclays (LON:BARC) also increased its price target to $180 from $168, maintaining an Equalweight rating, though it noted high market expectations. UBS maintained a neutral rating with a $160 price target, highlighting the company’s strategic focus on market share opportunities and profitability gains. Meanwhile, KeyBanc Capital Markets reiterated its Overweight rating with a $181 price target, expressing confidence in the company’s market share outlook. In other developments, Williams-Sonoma’s brand West Elm expanded its kids’ collection in collaboration with fashion designer Joseph Altuzarra, featuring nature-inspired designs. The collection includes various items such as a Botanical 6-Drawer Dresser and Vine Sheet Sets.
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