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Williams-Sonoma: Hold Rating Amid Strong Q3 Performance and Tariff Concerns

Williams-Sonoma: Hold Rating Amid Strong Q3 Performance and Tariff Concerns

Analyst Robert Ohmes from Bank of America Securities reiterated a Hold rating on Williams-Sonoma and keeping the price target at $215.00.

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Robert Ohmes has given his Hold rating due to a combination of factors influencing Williams-Sonoma’s financial outlook. The company’s third-quarter earnings per share exceeded expectations, driven by improved comparable sales and higher merchandise margins. However, the impact of tariffs is anticipated to be more significant in the fourth quarter and into 2026, which could pressure margins despite the company’s efforts to mitigate these costs.
Ohmes also notes that while the company has a strong operating margin structure and balance sheet, the uncertain tariff environment and broader macroeconomic factors present challenges. Despite these hurdles, Williams-Sonoma’s market share gains and operational efficiencies position it better than some industry peers. The price objective of $215 reflects these mixed factors, leading to a Hold rating as the stock’s current price aligns closely with its potential upside.

Ohmes covers the Consumer Defensive sector, focusing on stocks such as Walmart, Target, and Costco. According to TipRanks, Ohmes has an average return of 6.8% and a 54.62% success rate on recommended stocks.

In another report released today, Citi also maintained a Hold rating on the stock with a $188.00 price target.

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