Williams-Sonoma upgraded to Neutral at BofA after Q2 margin beat

As previously reported, BofA upgraded Williams-Sonoma to Neutral from Underperform with a price target of $146, up from $108, following the company’s better-than-expected Q2 results. Operating margins were “much better than expected” at 14.6% and these “strong” Q2 margins take the “downside scenario off the table” as full margin reversion looks “increasingly less likely,” the analyst tells investors. Williams-Sonoma lowered its 2023 revenue guidance, as expected, but the firm was “encouraged” to see operating margin guidance raised to 15%-16% from 14%-15% and thinks this “looks achievable given the first half of the year performance,” the analyst added.