Williams-Sonoma could be attractive to PE, rates ‘not conducive,’ says Jefferies

Jefferies analyst Jonathan Matuszewski notes that Williams-Sonoma shares gained yesterday after a Friday filing revealed a 5% stake from private equity firm Leonard Green & Partners. While stating that Williams-Sonoma “has some traits that render it attractive to PE,” the firm argues that the “rate backdrop for financing is not conducive” and the current financing environment “would require a large equity check.” The analyst, who adds that it is “important to remember, LG&P has used this approach in the past and deals did not materialize,” has an Underperform rating and $116 price target on Williams-Sonoma shares.