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In a report published Friday, Oppenheimer analyst Brian Nagel upgraded the rating on Williams-Sonoma, Inc. (NYSE: WSM) from Perform to Outperform with a price target of $90.

Home Retail appears well positioned within the Hardlines sector for the current economic environment. Analyst Brian Nagel expressed optimism regarding a "more complete and powerful upswing in residential real estate" helping to propel a further acceleration in home-related sales at leading chains.

Nagel believes that the recent upward momentum in home sales and household formation indicate "the potential for further improvements in demand for home-related goods." However, margins at leading Home Accessory chains could be under pressure due to more aggressive price promotions.

The Oppenheimer report named Williams-Sonoma as one of the top near-term picks, while also naming Home Depot Inc (NYSE: HD) and Lowe's Companies, Inc. (NYSE: LOW). While the longer-term prospects for Pier 1 Imports Inc (NYSE: PIR) and Bed Bath & Beyond Inc. (NASDAQ: BBBY) are bright, there appear to be no significant near-term positive catalysts for these shares.

"WSM has represented a "wish list" stock for us for a while. We view the chain as particularly well positioned to capitalize upon potentially improving demand trends within the Home Retail category. The WSM omni-channel model is a strong differentiator and profit driver and increasingly the model for most other chains," Nagel wrote.

Williams-Sonoma's sales and EPS could be boosted in the near term by abating West Coast port issues.

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