UPDATE: CRT Capital Reiterates Fair Value Rating, Raises PT on Williams-Sonoma on Broad Based Strength Heading into Holiday

In a report published Thursday, CRT Capital analyst Lee J. Giordano reiterated a Fair Value rating on

, and raised the price target from $72.00 to $75.00. In the report, CRT Capital noted, “We are maintaining our Fair Value rating and increasing our one-year price target to $75 from $72 on Williams-Sonoma, Inc. (WSM) following its better than expected third quarter earnings report (11/19/14). Third quarter EPS of $0.68 was higher than our estimate and consensus of $0.63, sales of $1.14 billion were higher than our $1.13 billion estimate and consensus of $1.12 billion, and comparable brand revenue growth of 8.7% was better than our 5% estimate, driven by sales strength across all concepts, particularly at West Elm. With a strong Q3 in the books, the Company increased its full year EPS guidance range, while issuing Q4 guidance below consensus. Longer-term we believe the Company remains well-positioned for double-digit long-term growth potential supported by its superior multi-channel capabilities, consistent execution, strong branded strategy, and various initiatives that should support operating margin expansion over time. With the stock trading at 19x our 2015 EPS estimate, valuation appears reasonable at current levels for a high-quality retailer with low-double digit long-term growth potential.” Williams-Sonoma closed on Wednesday at $69.42.