UPDATE: Deutsche Bank Reiterates On Restoration Hardware Following 3Q14 EPS Report

In a report published Thursday, Deutsche Bank analyst Adam Sindler reiterated a Buy rating on

, and raised the price target from $90.00 to $100.00. In the report, Deutsche Bank noted, “RH reported 3Q14 EPS of $0.49 on revs up 22.5% vs Thomson consensus of $0.48 on revs up 21.8%. Op margins increased approximately 150 bps y/y to 7.6% with GM up 165 bps. The GM gain was ahead of expectations on better than expected merch margins along with leverage on shipping and occ. The merch margin takeaway is key, as it shows RH was able to re-accelerate revenues from 2Q14 without needing to promote. RH also provided some early color on 2015 sq ft growth, with 30% - 35% better than the previous guidance of ‘approx 30%.' We maintain our Buy rating as RH remains in the early stages of a long-term transformation.” Restoration Hardware closed on Wednesday at $86.18.