Wells Fargo analyst Zachary Fadem maintained a Buy rating on RH (RH) today and set a price target of $175. The company’s shares closed yesterday at $131.82.
Fadem commented:
“We view the resignation of CFO Ryno Blignaut for health reasons as unfortunate, and wish him and his family well. The role is being filled by 6-year RH veteran, Jack Preston, who was previously SVP, Finance & Chief Strategy Officer. While some have expressed concern around the lack of guidance reiteration in RH’s 3/5 release, we interpret the decision as no change in view. While correlation with the U.S. and other category indicators has been historically low, we are bringing in our Q4/Q1 comp expectations to +4% (vs. +5% prior) to account for more challenging y/y weather and softer underlying retail trends. That said, our FY19 assumptions are largely unchanged, and view RH as well positioned as a share gainer with improving execution and one of few retailers with growing (+HSD to LDD) top line and EBIT margins.”
According to TipRanks.com, Fadem is a 4-star analyst with an average return of 9.5% and a 66.4% success rate. Fadem covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Floor & Decor Holdings Inc, and Advance Auto Parts.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for RH with a $175 average price target.
See today’s analyst top recommended stocks >>
Based on RH’s latest earnings release for the quarter ending October 31, the company reported a quarterly net profit of $22.41 million. In comparison, last year the company had a net profit of $261K.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
RH is a holding company which operates the business through its subsidiary Restoration Hardware, Inc. It offers furniture, lighting, textiles, bathware, decor, outdoor and garden, as well as baby and child products. The company operates an integrated business with multiple channels of distribution including galleries, source books and websites.
