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Williams-Sonoma Still a “Buy” at Canaccord Genuity; Expects E-Commerce Strength (WSM)

By Dividend.com,  June 01, 2012, 09:50:49 AM EDT

Home goods retailer Williams-Sonoma, Inc. ( WSM ) on Friday received continued bullish support from analysts at Canaccord Genuity.

The firm maintained its "Buy" rating and $55 price target on WSM, which suggests a massive 58% upside to the stock's Thursday closing price of $34.91.

A Canaccord Genuity analyst commented, "WSM remains our top pick as we believe the growth of the e-commerce business is not reflected in the share price. We expect WSM's online sales to increase at a five-year CAGR of 14%, versus 6% growth within the retail segment. We believe the e-commerce business will drive higher margins and returns as it grows to nearly half of total revenues by FY16. Shares currently trade at 13x our FY12 EPS estimate excluding cash per share of $3.77 and at 6x FY12 EV/EBITDA."

Williams-Sonoma shares fell 42 cents, or -1.2%, in premarket trading Friday.

The Bottom Line
Shares of Williams-Sonoma ( WSM ) have a 2.52% dividend yield, based on last night's closing stock price of $34.91. The stock has technical support in the $30-$32 price area. If the shares can firm up, we see overhead resistance around the $37-$38 price levels.

Williams-Sonoma, Inc. ( WSM ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: WSM



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