RH Inc. (RH:NYE) Analysts Bullish with a Strong Buy rating, $418 target

Telsey Advisory Group maintains Restoration Hardware as outperform, targets up from $285 to $315.

RH Stock Analysis:

Based on the RH stock forecasts from 16 analysts, the average analyst target price for RH is USD 417.88 over the next 12 months. RH’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of RH is Slightly Bullish , which is based on 6 positive signals and 5 negative signals. At the last closing, RH’s stock price was USD 258.05RH’s stock price has changed by +0.84% over the past week, -10.05% over the past month and -61.15% over the last year.

RH stock forecasts from 5 Crowd Analysts, has the average analyst target price for RH at USD 313 over the next 12 months. RH’s average Crowd rating is a Strong Buy.

 

About RH (RH:NYE)

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, 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, rhbabyandchild.com, rhteen.com, and rhmodern.com, as well as waterworks.com. As of January 29, 2022, it operated a total of 67 RH Galleries and 38 RH outlet stores in 30 states in the District of Columbia and Canada, as well as 14 Waterworks showrooms throughout the United States and the United Kingdom. The company was formerly known as Restoration Hardware Holdings, Inc. and changed its name to RH in January 2017. RH was incorporated in 2011 and is headquartered in Corte Madera, California.

 

Most Recent Analyst Ratings for RH:

 

News:

RH Inc. just announced it’s opening a RH Guesthouse in New York, a luxury experience for travelers seeking privacy. The units comprise of 6 suites with a secure private entrance and sport 2  bathrooms,  a gourmet pantry, in-room gym and access to the private rooftop garden, including a  pool.

RH Inc. just released their earnings and reported second quarter earnings per share of $8.08 which beat estimates by $1.45 , from the $6.63 forecasted. Revenue recorded for the quarter was $992 million against the consensus estimate of $968 million.

 

What we like:

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Earnings Growth

This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

 

What we don’t like:

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Highly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.