Williams-Sonoma (WSM) is presenting a consistently upbeat outlook supported by market-share gains, multiple internally driven growth initiatives and durable competitive advantages, UBS Securities said Friday in a report.
Recent discussions with senior executives reinforced a well-established narrative built on disciplined execution, several growth drivers and advantages the company believes are sustainable, UBS said. While the broader home-furnishings environment remains subdued by "meager housing activity, elevated interest rates and a cautious consumer backdrop," Williams-Sonoma's message has been consistent, the report said.
Rather than relying on a housing recovery, Williams-Sonoma is focusing on initiatives within its control, UBS said. Executives believe the company can sustain mid-to-high-single-digit revenue growth and mid-to-high-teens operating margins over time, the report said.
UBS has a neutral rating on Williams-Sonoma stock and a $247 price target.
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