Citi analyst Steven Zaccone has maintained their neutral stance on WSM stock, giving a Hold rating on November 18.
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Steven Zaccone has given his Hold rating due to a combination of factors impacting Williams-Sonoma. The company’s recent financial results showed a mixed performance, with same-store sales growth falling short of expectations, particularly at Pottery Barn, due to a strategic reduction in promotional activities. However, the company did manage to exceed earnings per share estimates, driven by a positive surprise in gross margin, and management has raised its EBIT margin guidance for the fiscal year 2025.
Despite these positive aspects, the ongoing impact of tariffs remains a concern, as they are expected to exert pressure on margins in the upcoming quarters. Additionally, while the stock’s valuation has decreased recently, it still remains high compared to historical levels. As a result, Zaccone has adjusted the target price to $188, reflecting a lower valuation multiple, and maintains a neutral stance on the stock.
According to TipRanks, Zaccone is a 4-star analyst with an average return of 4.4% and a 56.84% success rate. Zaccone covers the Consumer Cyclical sector, focusing on stocks such as Chewy, AutoZone, and O’Reilly Auto.
In another report released on November 18, Evercore ISI also maintained a Hold rating on the stock with a $190.00 price target.