Restoration Hardware (RH) PT Raised to $280 at Telsey

Telsey analyst Cristina Fernandez raised the price target on Restoration Hardware (NYSE: RH) to $280.00 (from $240.00) while maintaining a Outperform rating.

The analyst comments "TAG View: RH’s 4Q24 result, 1Q25 guidance, and 2025 guidance all fell short of expectations. The 4Q24 shortfall was a bit of a surprise as RH had seen very strong demand through its earnings report on December 12. However, the company noted demand slowed in 2H of December, albeit stabilized in January at up 19%. This, combined with a more uncertain macro environment and slower demand growth to-date led RH to provide revenue growth guidance for 2025 of 10%-13% that fell below the FactSet (FS) consensus of 14.2%. Positively, operating margin guidance of 14%-15% was largely as we expected and in line with FS at 14.8%. The negative FCF in 4Q24 due to a 35% increase in inventory YoY was also worse than expected and reduced RH's cash balance to $30MM."

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