Williams-Sonoma, Inc. (WSM) Stock: $170 Price Target And Equal-Weight Rating

By Amit Chowdhry ● Mar 25, 2022
  • The shares of Williams-Sonoma (NYSE: WSM) have received a $170 price target from Morgan Stanley. These are the details.

The shares of Williams-Sonoma (NYSE: WSM) have received a $170 price target from Morgan Stanley. These are the details. And Morgan Stanley analyst Simeon Gutman increased the price target on Williams-Sonoma from $160 while reiterating an “Equal-Weight” rating.

Gutman noted that the setup is tricky. And the valuation is undemanding and earnings power is holding up better than expected. 

“The market appears to be skeptical over the sustainability of sales and margins and we believe it is treating (Williams-Sonoma) similar to (Dick’s Sporting Goods) and (Bed Bath & Beyond) with an expectation for category reversion. If and when demand slows, promotions may return, and this dynamic could drive downward (and perhaps pronounced) pressure on sales and margins,” wrote Gutman in a research note. “We think (Williams-Sonoma) is being valued as if this outcome is inevitable, and timing is the only unknown. Even if this expected reversion doesn’t occur, we expect Williams-Sonoma’s growth to inevitably slow and margins to level off, which isn’t a great setup for any stock.”

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