UPDATE: Morgan Stanley Downgrades Williams-Sonoma As Momentum Slows

In a report published Thursday, Morgan Stanley analyst Simeon Gutman downgraded the rating on

from Overweight to Equal-Weight, and lowered the price target from $82.00 to $74.00. In the report, Morgan Stanley noted, “We are moving to EW on WSM and are lowering our price target to $74 and our 2015 EPS estimate to $3.59. While Q2 EPS was solid and in-line, we were expecting a carry-over in top-line momentum from previous quarters and comparable brand growth in the high single digits.We did not get this (Q2 comparable brand growth +5.7%), due to competition and tougher compares and now no longer believe the business will generate this level of growth in the near-term. Valuation (19x 2015 e earnings) is not as supportive of a business that we now see generating low teens growth over the next 12 months.” Williams-Sonoma closed on Wednesday at $74.89.