Williams-Sonoma (WSM) is expected to report a "good" fiscal fourth quarter and guide to slight comparable sales growth at the top end of its projected range this year, UBS Securities said in a note e-mailed Tuesday.

The home goods retailer is scheduled to report results Wednesday. UBS raised its earnings estimate to $2.92 a share from $2.80, with "slight upside" expected over Wall Street's views. Analysts polled by FactSet are looking for EPS of $2.90.

"We believe the market is anticipating comp growth of 2%" for the quarter, UBS analysts, including Michael Lasser, said. "This would exceed the current consensus forecast for a 1.4% decline."

The brokerage upped its price target on the stock to $140 from $135, with a sell rating.

Assuming Williams-Sonoma can achieve flattish to slightly positive comps in the fourth quarter, it could guide to flat to low-single digit growth for the year, according to the note. The company is likely to embed "some conservatism" in its outlook amid tariff and other headwinds, following in the footsteps of certain other retailers, the analysts wrote.

"We think the market is anchoring to (Williams-Sonoma) being able to earn around $10 of EPS this year (even if it does not initially guide this way)," the analysts said. "We would point out that it could be more complicated to achieve this in a cautious consumer spending environment."

Target (TGT) and AutoZone (AZO) are among the retailers that recently flagged potential impacts from the Trump administration's trade policies.

"Consumers of all income cohorts will probably grow more apprehensive as tariffs are implemented, other government policies are executed, and the capital markets exhibit more volatility," UBS said.