Bank of America Upgrades Williams-Sonoma to Buy (WSM)
Williams-Sonoma (NYSE:WSM) was upgraded by Bank of America from a “neutral” rating to a “buy” rating in a research note issued on Monday. The firm currently has a $82.00 price objective on the stock, up from their previous price objective of $70.00. Bank of America’s price objective would indicate a potential upside of 13.34% from the company’s current price.
The analysts wrote, “Given improved visibility and solid execution, we are upgrading WSM to Buy from Neutral and raising our PO to $82 from $70. We believe WSM represents one of the most attractive and sustainable beat-and-raise stories in Hardlines retail. “The ongoing shift to DTC (still) represents a huge opportunity, and innovative tie-ups and brand extensions are underpinning outsized growth and share gains. WSM’s higher-end, big-ticket positioning is also an asset. Our new $82 PO is based on 22x 2015E EPS, slightly above the10-year average P/E of 19.6x and versus our prior PO of $70 on 20x blended 2014/2015E. We would pair our new Buy rating on WSM with our concurrent BBBY downgrade to Underperform.”
Other equities research analysts have also recently issued reports about the stock. Analysts at Morgan Stanley initiated coverage on shares of Williams-Sonoma in a research note on Tuesday, June 24th. They set an “overweight” rating and a $82.00 price target on the stock. Separately, analysts at Barrington Research initiated coverage on shares of Williams-Sonoma in a research note on Monday, June 2nd. They set an “outperform” rating and a $80.00 price target on the stock. Finally, analysts at Piper Jaffray upgraded shares of Williams-Sonoma from a “neutral” rating to an “overweight” rating in a research note on Wednesday, May 28th. They now have a $85.00 price target on the stock, up previously from $71.00. Seven investment analysts have rated the stock with a hold rating and nine have given a buy rating to the company’s stock. The company currently has an average rating of “Buy” and an average target price of $72.17.
Williams-Sonoma (NYSE:WSM) opened at 72.35 on Monday. Williams-Sonoma has a one year low of $51.70 and a one year high of $72.96. The stock has a 50-day moving average of $68.43 and a 200-day moving average of $61.99. The company has a market cap of $6.809 billion and a price-to-earnings ratio of 24.74.
Williams-Sonoma (NYSE:WSM) last announced its earnings results on Wednesday, May 21st. The company reported $0.48 earnings per share for the quarter, beating the analysts’ consensus estimate of $0.44 by $0.04. The company had revenue of $974.00 million for the quarter, compared to the consensus estimate of $941.88 million. During the same quarter last year, the company posted $0.41 earnings per share. Williams-Sonoma’s revenue was up 9.7% compared to the same quarter last year. On average, analysts predict that Williams-Sonoma will post $3.20 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Tuesday, August 26th. Shareholders of record on Friday, July 25th will be paid a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a dividend yield of 1.82%. The ex-dividend date is Wednesday, July 23rd.
Williams-Sonoma, Inc is a multi-channel specialty retailer of products for the home. The Company is an e- commerce retailer with brands in home furnishings.
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