Williams-Sonoma stock price target raised to $230 from $181 at KeyBanc

Investing.com - KeyBanc raised its price target on Williams-Sonoma (NYSE:WSM) to $230.00 from $181.00 on Monday, while maintaining an Overweight rating on the home furnishings retailer’s stock. According to InvestingPro data, the stock currently trades at a P/E ratio of 23.18x and has delivered an impressive 48% return over the past year.

KeyBanc cited Williams-Sonoma as "one of the best positioned companies in the Home Furnishings sector to gain share and capitalize on improving trends in the industry."

The firm expects Williams-Sonoma to report strong quarterly results and provide a positive outlook, though it noted the stock has already risen significantly, gaining 29% over the past two months compared to the S&P Retail’s 10% increase.

KeyBanc believes investors will need to see the company beat expectations and raise guidance to drive further near-term upside in the stock price.

The firm highlighted Williams-Sonoma’s disciplined approach to full-price selling and anticipates continued market share gains and growth, making it one of KeyBanc’s favorite stocks within its discretionary and home-related coverage.

In other recent news, Williams-Sonoma has seen several analyst firms adjust their price targets for the company. UBS raised its price target to $184, maintaining a Neutral rating, and anticipates a 4.0% increase in second-quarter comparable sales, surpassing the consensus estimate of 2.4%. RBC Capital increased its price target to $212, maintaining an Outperform rating, and revised its second-quarter sales estimate to 3.6% growth, citing strong transaction data. Barclays also raised its price target to $180 while maintaining an Equalweight rating, expressing optimism tempered by high market expectations.

In addition to these analyst updates, Williams-Sonoma’s brand, West Elm, announced an expansion of its West Elm Kids collection in collaboration with fashion designer Joseph Altuzarra. This new collection features nature-inspired designs for children’s spaces, including furniture and bedding. Meanwhile, UBS maintained its Neutral rating and a $160 price target, highlighting the company’s focus on market share opportunities and profitability. Williams-Sonoma expects stable margins this year, with modest gross margin pressure offset by savings in expenses.

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