UPDATE: Wedbush Reiterates Neutral Rating, Raises PT for Williams-Sonoma

In a report published earlier today, Wedbush Securities Inc. reiterated its Neutral rating for Williams-Sonoma, Inc. (NYSE: WSM) and raised its price target from $35.00 to $37.00.

Wedbush went on to say “Although encouraged by plans to further differentiate the core W-S brand and new leadership, these initiatives should take some time to unfold. Gross margins continue to be under pressure as select promotions and free shipping offers are used to drive the business. Both PB Kids and PBteen experienced negative growth in Q1, which to us could indicate execution/customer service issues with regards to keeping acceptable levels of merchandise in stock for its customers. While we have great appreciation for WSM's multi-channel platform and longer-term investments in E-C and international, which we expect to continue, we do not see any near-term catalysts to move the meaningfully stock higher.”

Williams-Sonoma, Inc. closed yesterday at $35.79.

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