UPDATE: International Strategy & Investment Lowers PT on Williams-Sonoma from $40 to $38

International Strategy & Investment Group has published a research report on Williams-Sonoma (NYSE: WSM).

In the report, ISI wrote, "At first blush, the lowered retail sales were a little concerning, but with total revenue guidance flat (based on DTC up), this is a very positive thing. We have a fondness for stocks where management is willing to shutter stores (WSM will shutter 27 stores in 2011) and reallocate spending to boost returns. We believe the 2011 plan is front-end loaded; the 2H margin guidance seems cautious, with upside likely to come from gross margin."

ISI rated Williams-Sonoma a BUY with a price target lowered from $40.00 to $38.00. Williams-Sonoma closed Tuesday at $29.44.