Barclays cuts Williams-Sonoma to Underperform on ticket reset cycle

Barclays analyst Seth Sigman downgraded Williams-Sonoma to Underweight from Equal Weight with a price target of $115, down from $126. Ticket growth is moderating for all retailers, with potentially more to fall for some companies as inflation wanes and consumers trade back down, while transactions trends have been mixed, the analyst tells investors in a research note. The firm says home furnishings seems most exposed due to upside since 2019 from inflation, followed by home improvement. Williams-Sonoma “stands out the most and has some unique risks” on compares and uncertainty on out-year margins and earnings versus consensus estimates, although its low valuation “may limit the absolute downside, writes Barclays.