Shares of RH surged 6.5% on Wednesday, trading as high as $195.19 before settling at $194.63. This comes amid a 31% drop in trading volume compared to average sessions. The rally follows RH's better-than-expected Q1 earnings, reporting $0.13 earnings per share against an anticipated loss of $0.07. Revenue reached $813.95 million, a 12% year-on-year increase.
© RH
Analyst sentiment has shifted significantly. JPMorgan Chase & Co. slashed its price target from $510 to $250 but maintained an "overweight" rating. Morgan Stanley made a similar move, cutting its target from $530 to $300. Citigroup downgraded its target to $200, citing a "neutral" stance, while Stifel Nicolaus remained optimistic with a "$390 buy" rating. The average consensus price is now $272.50, with nine "buy", six "hold", and two "sell" ratings.
Institutional interest remains high, with investors like AllianceBernstein and Norges Bank significantly increasing holdings. RH now holds a market capitalisation of $3.55 billion and trades at a price-to-earnings ratio of 45.08.
RH operates in the home furnishings sector through online channels and showrooms in the US, Canada, the UK, and Germany, offering products ranging from décor to outdoor furniture.
Source: www.marketbeat.com