Williams-Sonoma price target raised to $300 from $295 at RBC Capital

RBC Capital analyst Steven Shemesh raised the firm’s price target on Williams-Sonoma to $300 from $295 and keeps an Outperform rating on the shares. The company’s Q1 comp improvement and 30% EPS beat were somewhat overshadowed by the fact that revised guidance implies operating margin is expected to be flat for the remainder of the year, the analyst tells investors in a research note. There’s some conservatism built in here, but Williams-Sonoma management should also begin to reinvest gross margin upside into advertising to drive sales, thefirm added.