On Monday, analysts at Canaccord Genuity reiterated a bullish rating on home product retailer Williams-Sonoma, Inc. (WSM) and raised its price target as the company’s e-commerce business drives growth.
The analysts back a “Buy” rating on WSM and see shares reaching $57, up from the previous target of $55. This new valuation suggests a 26% upside to Friday’s closing price of $45.26.
A Canaccord Genuity analyst commented, “ WSM’s market-leading e-commerce segment drives its growth, and we project it will grow at a five-year CAGR of 14% vs. 4% growth in the retail segment. In our view, the threat of Amazon is not as great as perceived, as our cross checks show AMZN’s average discount to be less than 1%. We expect WSM to continue to protect its dominant position online through greater product exclusivity and more effective marketing. The company has taken a more-aggressive approach to free shipping, and we believe there are multiple levers to offset the margin impact.”
Williams-Sonoma shares were up a fraction during Monday morning trading. The stock is up about +17% over the past twelve months.
The Bottom Line
Shares of Williams-Sonoma (WSM) have a dividend yield of 1.94% based on Monday’s intraday trading price of $45.27 and the company’s annualized dividend payout of 88 cents per share.
Williams-Sonoma, Inc. (WSM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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