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Investing.com - RBC Capital raised its price target on Williams-Sonoma (NYSE:WSM) to $212.00 from $182.00 on Thursday, while maintaining an Outperform rating on the stock. Currently trading at $204.09 with a market capitalization of $25.08 billion, InvestingPro analysis indicates the stock is trading above its Fair Value.
The firm increased its second-quarter comparable sales estimate to 3.6% growth, up from its previous 1.2% estimate and above the consensus of 1.9%, citing strong transaction data and positive peer indicators. With earnings scheduled for August 20, investors following InvestingPro’s comprehensive analysis can access 13+ additional exclusive insights about Williams-Sonoma’s performance and valuation metrics.
RBC now forecasts an operating margin of 16.4% and adjusted earnings per share of $1.89 for the quarter, which would put Williams-Sonoma on track to reach the high end of its 2025 guidance.
The higher price target reflects approximately 23 times RBC’s revised 2026 adjusted EPS estimate of $9.20, up from the previous multiple of about 20 times, which the firm attributes to recent market performance and a more favorable interest rate outlook.
RBC noted that while expected interest rate cuts should support the stock, investor focus will likely be on the sustainability of current sales momentum, particularly as current trends may have been positively impacted by pulled-forward demand and as tariff-led price increases are expected to become more widespread in the second half of the year.
In other recent news, Williams-Sonoma has been the focus of several notable developments. Barclays has raised its price target for the company from $168 to $180, maintaining an Equalweight rating, reflecting a positive outlook tempered by high market expectations. UBS also maintained its 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 leadership and market share potential. Additionally, Williams-Sonoma declared a quarterly dividend of $0.66 per share, payable on August 22, 2025, to shareholders of record as of July 18, 2025. On the product front, West Elm, a Williams-Sonoma brand, expanded its Kids collection in collaboration with fashion designer Joseph Altuzarra, featuring nature-inspired designs. The new collection includes items such as a Botanical 6-Drawer Dresser and Vine Sheet Sets. These recent developments indicate a strategic focus on both financial performance and product innovation.
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