Restoration Hardware (RH) Rating Lowered to Hold at Zacks Investment Research

Restoration Hardware (NYSE:RH) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.

According to Zacks, “RH’s shares have gained 4.6% compared with the industry’s decline of 6.1% in the past three months. Estimates have also been trending upward, reflecting analysts' optimism over the stock's future earnings potential. RH has been exhibiting strong quarterly numbers buoyed by its focus on improving profit margins rather than chasing for sales, as well as creating a new and differentiating shopping experience with the addition of hospitality (restaurants and cafes) in new Full Line Design Galleries. The company’s efforts to redesign its supply chain network and rationalize product offerings are expected to boost growth. Initiatives like RH Modern, RH Teen, RH Hospitality, the redesign of RH Interiors Source Book and the rollout of Design Ateliers across its retail galleries are expected to drive growth. However, higher dependence on imports makes it vulnerable to uncertain macro conditions.”

RH has been the subject of a number of other reports. Wedbush reissued an “outperform” rating and set a $160.00 price target (up from $145.00) on shares of Restoration Hardware in a research report on Tuesday, December 4th. JPMorgan Chase & Co. began coverage on shares of Restoration Hardware in a research report on Friday, November 9th. They set an “overweight” rating and a $155.00 price target for the company. ValuEngine cut shares of Restoration Hardware from a “hold” rating to a “sell” rating in a research report on Friday, December 21st. Stifel Nicolaus lifted their price target on shares of Restoration Hardware from $150.00 to $180.00 and gave the company a “buy” rating in a research report on Tuesday, December 4th. Finally, Gordon Haskett cut shares of Restoration Hardware from an “accumulate” rating to a “hold” rating in a research report on Thursday, November 8th. One equities research analyst has rated the stock with a sell rating, nine have issued a hold rating and eleven have issued a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and an average target price of $152.28.

Shares of NYSE RH opened at $141.64 on Tuesday. Restoration Hardware has a 1 year low of $74.50 and a 1 year high of $164.49. The stock has a market cap of $2.95 billion, a P/E ratio of 46.44, a price-to-earnings-growth ratio of 0.77 and a beta of 1.64. The company has a debt-to-equity ratio of 26.22, a current ratio of 0.80 and a quick ratio of 0.15.

Restoration Hardware (NYSE:RH) last issued its quarterly earnings results on Monday, December 3rd. The company reported $1.73 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.27 by $0.46. Restoration Hardware had a net margin of 4.58% and a return on equity of 404.46%. The company had revenue of $636.60 million during the quarter, compared to analysts’ expectations of $632.25 million. During the same period last year, the company posted $1.04 EPS. Restoration Hardware’s revenue was up 7.4% on a year-over-year basis. As a group, research analysts forecast that Restoration Hardware will post 7.95 earnings per share for the current fiscal year.

A hedge fund recently raised its stake in Restoration Hardware stock. Boston Advisors LLC increased its holdings in Restoration Hardware Holdings, Inc (NYSE:RH) by 13.1% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 34,103 shares of the company’s stock after buying an additional 3,945 shares during the period. Boston Advisors LLC owned 0.16% of Restoration Hardware worth $4,087,000 as of its most recent filing with the Securities and Exchange Commission.

About Restoration Hardware

RH, together with its subsidiaries, operates as a retailer in the home furnishings. It offers products in various categories, including furniture, lighting, textiles, bath ware, décor, outdoor and garden, tableware, and child and teen furnishings. The company provides its products through its retail galleries; and Source Books, a series of catalogs, as well as online through rh.com, restorationhardware.com, rhbabyandchild.com, rhteen.com, and rhmodern.com, as well as waterworks.com.

Featured Story: How Short Selling Works

Get a free copy of the Zacks research report on Restoration Hardware (RH)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Restoration Hardware (NYSE:RH)

Receive News & Ratings for Restoration Hardware Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Restoration Hardware and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply