The home products and furnishings retailer is on a path towards losing its "growth company status," the firm said.
The firm, which is negative on the U.S. retail industry, is also cautious on the home furnishings sector.
"While our current outlook calls for muted, but positive, retail sales environment in 2016, we believe it is best to maintain a defensive posturing and avoid highly cyclical categories such as Home Furnishings," the firm added.
Williams-Sonoma stock closed up by 2.52% to $55.73 on Wednesday.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C+. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and unimpressive growth in net income.
You can view the full analysis from the report here: WSM