Bank Of America Sees Earnings Momentum Set To Accelerate For Williams-Sonoma

In a report published Tuesday, Bank of America analyst Denise Chai reiterated a Buy rating and $82.00 price target on

. In the report, Bank of America noted, “WSM fell 12% after reporting Q2 earnings that beat the high end of its guidance despite tax headwinds. We believe share price weakness – WSM's biggest one-day drop in years – was the result of 3 concerns: 1) larger-than-expected gross margin pressure although EBIT margin was up, 2) lack of a FY guidance raise effectively due to a higher tax rate and 3) 3Q14 guidance that was 4c below consensus. We believe the stock is now set to outperform again given that 3Q14 guidance looks conservative to us and nothing has changed with the story.” Williams-Sonoma closed on Friday at $65.77.