03:44 PM EDT, 08/19/2024 (MT Newswires) -- Williams-Sonoma's ( WSM ) shares need another "upward revision cycle" to maintain their outperformance, UBS Securities said Sunday in a report.

UBS expects the rate of upward revisions to guidance may slow. "If estimates don't continue to move up, the market will probably fret that the downside could be significant," the report said.

Sales and earnings per share in Q2 probably will match or "slightly" miss estimates, allowing the company to maintain its 2024 outlook "or just point to a slight reduction," UBS said.

The company "may be in a select group of retailers that doesn't need to take a significantly more cautious view for the back half of the year," UBS said, partly citing high levels of full-price selling.

UBS has a sell rating on Williams-Sonoma ( WSM ) and a price target at $128.

Results from Q2 are expected Thursday.

Shares of the company rose 1.3% in recent Monday trading.

Price: 139.65, Change: +1.80, Percent Change: +1.31