Restoration Hardware (RH) PT Raised to $550 at Guggenheim
Guggenheim analyst Steven Forbes raised the price target on Restoration Hardware (NYSE: RH) to $550.00 (from $425.00) while maintaining a Buy rating.
The analyst commented: "As previewed, we had expected RH's 3Q 2024 operating results to provide foundational support behind our 2025 base-to-bull-case framework (EPS of $15.00-20.00 versus the ~$11.90 consensus forecast). Bottom line, not only did RH meet the mid-point of its 3Q total demand revenue guidance (+13% versus +12-14%) but management noted that total demand accelerated to +18% during November (inclusive of +24% RH Brand demand)—with RH Brand demand growth accelerating even further December month-to-date (at +30%). Considering that the new RH Modern sourcebook—featuring ~54 new collections (with limited in-store presence and in-stocks) —only launched in early November combined with the company's upcoming product introductions—89 new RH Interiors collections and 8 new RH Outdoor collections in early February 2025—we have gained increased conviction that RH's three “core” product attributes (see “October Field Trip”) are poised to lift the business back to peak demand trends over the next 12-24 months. We are raising our estimates and 12-month price target to $550 (from $425) while reiterating our “Best Idea” designation."