UPDATE: J.P. Morgan Raises Williams-Sonoma's PT
According to a research report published this morning, J.P. Morgan has increased Williams-Sonoma's (NYSE: WSM) PT from $37 to $41.
In the report, J.P. Morgan said, "WSM's results largely beat expectations with strong retail comps at PB and WE combined with better than expected SG&A driving EPS upside. While WS, PBK, and PBT all saw negative brand comps, encouragingly it appears that performance improved during the quarter at WS, and PBK is expected to see better sales once furniture fulfillment improves in 2Q. The increased promotional environment YOY remained and selling margins were estimated down over 100 bps in 1Q. Certainly this is better than the 150 bps in 4Q, but combined with negative 3.2% brand comps at the core WS concept (27% of sales), it's a big overhang on the stock driven by a competitive environment for name-brand cookware, electrics, and other cooking tools as retailers break MAP pricing standards to drive traffic (online and in-store)."
J.P. Morgan maintains its Neutral rating on Williams-Sonoma, which closed yesterday at $35.89.
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