Benzinga - by Priya Nigam, Benzinga Staff Writer.
Shares of RH (NYSE: RH), the home furnishings company formerly known as Restoration Hardware, reported weaker-than-expected results for its fourth quarter.
While the Corte Madera, California-based company released a “rough print,” there is optimism around an improvement in demand, according to JPMorgan.
The RH Analyst: Christopher Horvers maintained an Overweight rating, while raising the price target from $329 to $345.
The RH Thesis: The company reported a 4.4% decline in revenues for the fourth quarter, missing expectations, which management attributed to a $40 million headwind “from severe January weather and shipping delays from the Red Sea conflict,” Horvers said in the note.
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Although RH’s profits were pushed out again, management’s tone about the first quarter was optimistic, the analyst stated.
“FY24 sales growth expected to accelerate throughout the year; demand comps to exceed reported as inventory chases orders,” he added.
“Looking ahead, it is important that RH starts to deliver on sales (and margins) given the newness, store openings, and European launches as credibility questions are starting to build with some investors,” Horvers further wrote.
RH Price Action: Shares of RH had risen by 16.19% to $345.07 at the time of publication on Thursday.
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Latest Ratings for RH
| Mar 2022 | Wells Fargo | Maintains | Overweight | |
| Jan 2022 | Citigroup | Maintains | Buy | |
| Sep 2021 | UBS | Maintains | Neutral |
View the Latest Analyst Ratings
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