UPDATE: Goldman Sachs Downgrades Williams-Sonoma to Neutral on Profit Growth Outlook

Goldman Sachs downgraded Williams-Sonoma WSM from Buy to Neutral and maintained a $51.00 price target. Goldman Sachs said, "We believe gross profit growth is cresting in 2H2012 as the firm cycles depressed year-ago margins. WSM is relatively mature, based on space growth, and margins are at long-run peaks. As a result, we expect modest multiple contraction, with about 8% upside to our $51 target (unchanged). Note that holiday sales met expectations, and the firm reiterated 4Q guidance; we did expect EPS upside, and still do, even with a slightly lower 4Q forecast." Williams-Sonoma closed at $47.13 on Wednesday.