Guggenheim Reiterates 'Best Idea' Designation for Restoration Hardware (RH) Following EPS

Guggenheim analyst Steven Forbes reiterated a Buy rating, $825.00 price target, and Best Idea designation on Restoration Hardware (NYSE: RH) following Q3 results, saying the 2022 catalyst path remains intact.

The analyst commented, "Not only did RH’s 3Q 2021 operating results come in ahead of our expectations, broadly (inclusive of net sales and gross margin) but management reiterated the 2022 catalyst path—a) the introduction of RH Contemporary, b) new RH Interiors and RH Modern collections, c) the opening of RH England, d) the opening of the first RH Guesthouse, e) the unveiling of The World of RH digital portal, and f) the expansion of RH In-Your-Home. In addition, although we still await a formal use-of-proceeds announcement for the $2.0 billion term loan raised in mid-October, we continue to expect that transaction to be net accretive to 2022 EPS—see “"potential to acquire, retire, purchase or redeem warrants"”. We are raising our net sales and EBITDA estimates while reiterating our “Best Idea” designation."

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 $576.96 yesterday.

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