Restoration Hardware (RH) Bullish View Reiterated at BB&T Capital Following ‘Beat and Raise’
BB&T Capital reiterated a Buy rating and $120.00 price target on Restoration Hardware (NYSE: RH) following the company's 3Q earnings report. Net revenues increased 9.8% to $532M, with comparable brand revenues up 7%. Management noted the sequential revenue growth deceleration was expected given the yr/yr shift in the timing of new product introductions. EPS rose 32.7% to $0.65, $0.02 ahead of consensus. Management increased its FY’15 diluted EPS guidance to $3.11-$3.16 from $3.06-$3.16, compared to prior consensus of $3.12.
Analyst Anthony Chukumba commented, "We were impressed by Restoration Hardware's (RH) Q3'15 "beat and raise," particularly given the disappointing results posted recently by other retailers catering to wellheeled consumers and Williams-Sonoma's (WSM-$62.63-Hold) worse-than-expected Q4'15 guidance. We continue to believe RH remains on track to meet or exceed its longterm revenue and profit margin targets, and reiterate our Buy rating and $120 price target."
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Shares of Restoration Hardware closed at $87.59 yesterday.