Zachary Fadem, an analyst from Wells Fargo, maintained the Hold rating on Williams-Sonoma. The associated price target remains the same with $205.00.
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Zachary Fadem has given his Hold rating due to a combination of factors impacting Williams-Sonoma’s performance and outlook. Despite the company delivering a strong third-quarter performance with comparable sales growth and gross margin expansion, there are concerns about the sustainability of these gains. The impressive margin improvements are partly attributed to timing factors, and there are uncertainties regarding the impact of tariffs in the upcoming fiscal year.
Additionally, while Williams-Sonoma continues to gain market share and execute well, the elevated price-to-earnings ratio and limited near-term visibility present challenges. The company faces tougher comparisons in the fourth quarter, and the potential tariff-related margin pressures in fiscal year 2026 add to the cautious outlook. As a result, Fadem remains sidelined, opting for a Hold rating until there is more clarity on these issues.
In another report released today, Citi also maintained a Hold rating on the stock with a $188.00 price target.
WSM’s price has also changed slightly for the past six months – from $174.280 to $174.620, which is a 0.20% increase.