Barclays upgrades Williams-Sonoma to Equal Weight on less earnings risk

Barclays upgraded Williams-Sonoma (WSM) to Equal Weight from Underweight with a price target of $166, up from $131. The firm is still concerned about the macro environment for big ticket items, but now sees less risk to Williams-Sonoma’s fiscal 2025 earnings and does not expect the company’s fundamentals to meaningfully underperform other discretionary names. The analyst believes the company’s Q1 trends have been stable. The upgrade reflects more aggressive price increases observed recently at Williams-Sonoma that could contribute to sales and margins along with guidance embedding most of the current tariffs and the recent stock performance, the analyst tells investors in a research note.