Buy this specialty retail stock that is trading 14% off its record high, Goldman Sachs says
Williams-Sonoma stock is looking very attractive at its current price, according to Goldman Sachs. The investment bank upgraded the retailer to buy from neutral, and hiked its price target to $218 from $185. “With one of the strongest portfolio of brands in retail and the opportunity for sales growth acceleration still ahead of them (from both unit and comp growth), we think the stock has ~14% upside from current levels,” Goldman analyst Kate McShane said Monday in a note to clients. The upgrade comes as Williams-Sonoma stock has retreated from its record high of roughly $220 hit in February. The stock gained ground earlier this year as its subsidiaries Pottery Barn Kids and West Elm unveiled new partnerships aimed at boosting sales. But, the stock has since given up some of those gains amid the Iran war and continued uncertainties over President Donald Trump’s tariffs. That makes now a good time to scoop up shares, according to Goldman Sachs. “We have been waiting for some time for a better entry point for Williams-Sonoma, and we think this is the right level with the stock ~14% off its recent highs in February,” McShane wrote. WSM YTD mountain Shares are up about 6% in 2026. Down the line, Williams-Sonoma is likely to gain ground as it adds new stores and continues to push for improvements at its brands, including high-end home furnishings retailer West Elm, according to the analyst. “[Williams-Sonoma] is resuming new store openings in [fiscal year 2026], likely accelerating top-line growth longer term,” McShane wrote. She said 20 stores will be added this year. “We note these store openings represent the most openings in a decade, as the company has closed 18% of their store fleet since 2019,” she said. A relaunch of Dormify, a specialty brand for college students, is also planned this year, which could “drive upside to earnings and the stock,” the analyst said. Goldman Sachs’ call goes against consensus on the Street. Of the 23 analysts covering the stock, eight have a buy or strong buy on shares. The majority view has the stock at a hold. Shares are up roughly 6% in the year to date.