Williams-Sonoma downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Simeon Gutman downgraded Williams-Sonoma to Underweight from Equal Weight with a price target of $100, down from $150. The company’s earnings revisions could turn "sharply negative" in 2023 with the home furnishings category "negatively inflecting" as sales volumes continue to normalize, Gutman tells investors in a research note. The analyst sees "some initial cracks" in Williams-Sonoma’s results, with demand comparables turning slightly negative for the first time since the start of the pandemic.