Williams-Sonoma's (NYSE:WSM) Margins Uncertain Heading into 2011

Citing the core WSM comp and uncertainty concerning margins for Williams-Sonoma (NYSE:WSM) as 2011 approaches, Barclays (NYSE:BCS) says they're maintaining an "Equalweight" rating on the company.

"Williams-Sonoma is one of the more hotly contested names in hardline retail. Today, the bears spoke with a louder voice pointing to the slowdown in the core WSM comp and the uncertainty regarding the margin outlook in 2011. Putting aside these points, the company continues to do a remarkable job of executing and generating comp increases even as comparisons have become more difficult. Additionally, its e-commerce segment is showing accelerating gains and there is reason to believe that should continue. However, from here, we think there needs to be more clarity on the company's overall outlook for 2011 before the shares push through to the next level," said Barclays.

Williams-Sonoma closed Friday at $32.62, gaining $0.53, or 1.65 percent. Barclays raised their price target on them from $29 to $31.