Williams-Sonoma (WSM) will likely post in-line Q4 results after an overall solid holiday quarter, UBS said in a Tuesday note. The results are due March 18.
"It's continuing to string together a track record of healthy financial performances despite an uncooperative industry
backdrop," the report said.
"With each quarter it can achieve this, we think it's providing evidence to the market that it deserves a premium valuation."
The report said focus will be on its margin guidance for this year, especially amid the recent changes in the tariff landscape and the potential pressure it flagged last quarter.
The note said the retailer's margin trajectory has been a major stock driver during the past few years, so any perceived change in this metric would be at the forefront of the debate.
UBS raised its price target to $185 from $175 and kept its neutral rating on Williams-Sonoma.
Price: 185.48, Change: -2.91, Percent Change: -1.54
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