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UPDATE: Bank Of America Upgrades Restoration Hardware On Unique Growth Story

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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

DateFirmActionFromTo
Oct 2014Deutsche BankInitiates Coverage onBuy
Oct 2014Raymond JamesInitiates Coverage onOutperform
Sep 2014CRT CapitalInitiates Coverage onBuy

View More Analyst Ratings for RH
View the Latest Analyst Ratings

Posted-In: Bank of America Lorraine HutchinsonAnalyst Color Upgrades Analyst Ratings

 

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