Restoration Hardware (NYSE:RH) Shares Gap Up on Analyst Upgrade

Restoration Hardware Holdings, Inc (NYSE:RH) gapped up before the market opened on Friday after Zacks Investment Research upgraded the stock from a sell rating to a hold rating. The stock had previously closed at $99.82, but opened at $109.91. Zacks Investment Research now has a $115.00 price target on the stock. Restoration Hardware shares last traded at $109.14, with a volume of 1320476 shares.

According to Zacks, “RH’s shares, which have underperformed its industry year to date, advanced 15.8% post fiscal first-quarter 2019 results. Quarterly earnings and revenues handily surpassed analysts’ expectations, and grew 53% and 7.4%, respectively. Despite adverse macro trends and higher tariffs, revenue growth was aided by the introduction of the RH Beach House, continued elevation and expansion of its product offerings, investments in RH Interior Design and launch of the RH Ski House. In view of solid start to fiscal 2019, its raised guidance is encouraging. However, market volatility, continued softness in the high-end housing market, and ongoing exit from unprofitable and non-strategic businesses are concerns. Higher shipping and labor costs, as well as greater discounts in outlet stores added to the woes.”

A number of other research firms also recently weighed in on RH. Wedbush reissued an “outperform” rating and set a $160.00 price target on shares of Restoration Hardware in a research note on Monday, March 18th. Evercore ISI assumed coverage on shares of Restoration Hardware in a research note on Wednesday, March 20th. They set an “in-line” rating and a $145.00 price target for the company. Cowen reissued a “market perform” rating and set a $120.00 price target (down from $150.00) on shares of Restoration Hardware in a research note on Friday, March 29th. Deutsche Bank downgraded shares of Restoration Hardware from a “buy” rating to a “hold” rating and dropped their price target for the stock from $185.00 to $124.00 in a research note on Friday, March 29th. Finally, Bank of America reissued an “underperform” rating and set a $85.00 price target on shares of Restoration Hardware in a research note on Friday, March 29th. Two research analysts have rated the stock with a sell rating, nine have assigned a hold rating and eight have given a buy rating to the company’s stock. The company currently has an average rating of “Hold” and an average target price of $138.59.

A hedge fund recently bought a new stake in Restoration Hardware stock. Hodges Capital Management Inc. bought a new stake in Restoration Hardware Holdings, Inc (NYSE:RH) in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 3,807 shares of the company’s stock, valued at approximately $456,000.

The company has a current ratio of 0.74, a quick ratio of 0.16 and a debt-to-equity ratio of 26.22. The company has a market cap of $1.74 billion, a P/E ratio of 13.04, a P/E/G ratio of 0.91 and a beta of 1.64.

Restoration Hardware (NYSE:RH) last issued its earnings results on Wednesday, June 12th. The company reported $1.85 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.54 by $0.31. Restoration Hardware had a net margin of 6.22% and a return on equity of 436.75%. The firm had revenue of $598.42 million during the quarter, compared to the consensus estimate of $583.69 million. During the same quarter in the prior year, the firm earned $1.33 earnings per share. The business’s quarterly revenue was up 7.4% on a year-over-year basis. As a group, equities analysts predict that Restoration Hardware Holdings, Inc will post 8.33 earnings per share for the current fiscal year.

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About Restoration Hardware (NYSE:RH)

RH, together with its subsidiaries, operates as a retailer in the home furnishings. It offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, tableware, and child and teen furnishings. The company provides its products through its retail galleries; and Source Books, a series of catalogs, as well as online through rh.com, restorationhardware.com, rhbabyandchild.com, rhteen.com, and rhmodern.com, as well as waterworks.com.

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