Restoration Hardware (RH) Price Target Lowered to $91 at Piper Jaffray Following Q3 Results
Piper Jaffray cut the price target on Neutral Restoration Hardware (NYSE: RH), and cut the price target to $91.00 (from $109.00), following the company's 3Q earnings report. Adjusted EPS of $0.65 compares to consensus of $0.63. Comparable brand revenues were up 7% vs. the Street’s estimate of 10%. RH did a commendable job in besting FQ3 earnings expectations and issuing FQ4 guidance above consensus despite FQ3 top-line performance coming in below expectations.
Analyst Neely Tamminga commented, "We are revising our estimates slightly on RH following the company’s FQ3 earnings release. The company did a commendable job in besting FQ3 earnings expectations and issuing FQ4 guidance above consensus despite FQ3 top-line performance coming in below expectations. Longer-term, management is targeting $4B-$5B in North American revenues and a mid-teens operating margins on their base of $1.9B in revenue last year with a 9.4% operating margin. With the stock trading near our price target, we maintain our Neutral rating."
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Shares of Restoration Hardware closed at $87.59 yesterday.