UPDATE: Bank of America Downgrades on Williams-Sonoma Lack of Catalysts Limits Upside

Bank of America (BAC) published a report early Friday morning on Williams-Sonoma (WSM). In the report BAC downgraded its rating on WSM to neutral from buy. In the report Bank of America stated "We are downgrading WSM from Buy to Neutral and lifting our PO to $60 from $55 by rolling out to 2014E EPS (still represents a 19x multiple), as we think 2014 better represents normalized earnings power. WSM is up 28% YTD, against a 16% rise in the S&P500. Valuations are among the highest in Hardline Retail, trading at 20/17x 2013/14E EPS and representing more than a 40% premium to Bed Bath & Beyond. WSM is also trading at a premium to other luxury names such as COH and JWN. While we remain positive on WSM's growth prospects and capital return, we think these factors are priced in and shares are unlikely to outperform given a lack of near-term catalysts." WSM closed at $55.11 on Thursday.