Goldman Sachs Downgrades Restoration Hardware (RH) to Buy Citing Deteriorating Risk Profile

January 19, 2017 5:23 AM EST
Get Alerts RH Hot Sheet
Price: $672.15 -1.94%

Rating Summary:
    15 Buy, 16 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 7 | Down: 15 | New: 24
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Goldman Sachs downgraded Restoration Hardware (NYSE: RH) from Conviction Buy to Buy, keeps a price target of $40.00.

Analyst Matthew Fassler comments "We remove RH from the America’s Conviction List but maintain our Buy rating. Our Buy rating is based on the company’s franchise value and an expected earnings recovery in 2017. The company’s inconsistent execution, our positioning in line with consensus (vs. above), potential tax exposure and smaller concerns about mobile and the member program suggest a level of risk that leads us to remove the stock from the Conviction List. We maintain our 12-month price target of $40. Since we added RH to the Conviction List on August 18, 2016, the stock is has fallen 2% vs. S&P 500 +4% and XRT -3%, reflecting a 4Q guide-down."

For an analyst ratings summary and ratings history on Restoration Hardware click here. For more ratings news on Restoration Hardware click here.

Shares of Restoration Hardware closed at $30.19 yesterday.

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