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."

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 $87.59 yesterday.

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