UPDATE: Bank Of America Upgrades Restoration Hardware On Unique Growth Story
In a report published Wednesday, Bank of America analyst Lorraine Hutchinson upgraded the rating on Restoration Hardware (NYSE: RH) from Neutral to Buy, and raised the price target from $85.00 to $110.00.
In the report, Bank of America noted, “We are Upgrading Restoration Hardware to Buy from Neutral and raising our Price Objective to $110 from $85. We think that RH has very significant growth potential, driven by a real estate transformation and successful category extensions. This trajectory is even more impressive given the dearth of growth stories in today's challenged retail landscape.
"We forecast a 30% 3-year earnings growth CAGR, and view today's 23x our F2016E P/E as low for this type of growth, particularly since we see the opportunity for upside to estimates. Our Price Objective is based on a 29x our F2016E P/E multiple.”
Restoration Hardware closed on Tuesday at $87.06.
Latest Ratings for RH
|Sep 2014||CRT Capital||Initiates Coverage on||Buy|
|Sep 2014||Wolfe Research||Upgrades||Underperform||Peer Perform|
|Jul 2014||BB&T Capital||Downgrades||Buy||Hold|
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