Piper Jaffray Remains Sidelined on Restoration Hardware (RH) - PT to $32
Piper Jaffray maintained a Neutral rating on Restoration Hardware (NYSE: RH), and cut the price target to $32.00 (from $46.00), following the company's 1Q earnings report. RH reported a loss per share of ($0.05), missing Piper Jaffray's estimate of $0.04. Guidance for FQ2 calls for EPS in the range of $0.28 to $0.33 versus consensus of $0.80
Analyst Neely Tamminga commented, "We are lowering our estimates for FQ2 and the full year on the heels of RH's FQ1 results, which came in below expectations. We continue to sit on the sidelines with respect to RH shares in that we remain concerned that the issues facing RH are not just production issues for RH Modern, lackluster demand from oil and currency related markets, and stock market volatility causing the underperformance at RH. We surmise there could be potential issues with the company nearing the edge of its total addressable market for luxury furniture buyers. In looking ahead to the balance of 2016, management offered a lowered outlook and much of the newness and store openings are back-end weighted. In the near-term, there is more uncertainty than surety, and we believe a Neutral rating is appropriate."
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Shares of Restoration Hardware closed at $36.07 yesterday.