UPDATE: Goldman Sachs Reiterates Neutral Rating, Raises PT on Williams-Sonoma Following 4Q Report

In a report published Wednesday, Goldman Sachs analyst Matthew J. Fassler reiterated a Neutral rating on Williams-Sonoma

, and raised the price target from $51.00 to $53.00. In the report, Fassler noted, “Three points from WSM's 4Q report eclipsed the impact of the quarter, which essentially met our expectations: (1) The firm spoke of prospects for more pronounced operating leverage in 2014 and beyond, presumably after it seasons several years of investment spending; margin has hovered in the 9.9%-10.3% range for the past three years. (2) The company announced a change in management for the namesake Williams-Sonoma brand, as veteran Richard Harvey retires, and is replaced by Janet Hayes, currently the President of Pottery Barn Kids and PBteen. W-S has underperformed, notably at retail, and the firm detailed plans to innovate on assortments and presentation. We view this favorably. (3) WSM made a big statement on capital allocation, authorizing a $750 mn buyback, to be completed over three years, implying an annual buyback of $250 mn vs. an annual average of $158 mn over the past three years. The company also raised its quarterly dividend by 41%, to $0.31/share, implying a 2.7% dividend yield at Tuesday's closing price. 4Q2012 EPS of $1.34 vs. 4Q2011's $1.17 beat our $1.32 and the Street's $1.29, although the tax rate added $0.04 to the result.” Williams-Sonoma closed on Tuesday at $45.21.