Zacks Investment Research Downgrades Restoration Hardware (RH) to Sell

Restoration Hardware (NYSE:RH) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Thursday, Zacks.com reports. They currently have a $92.00 target price on the stock. Zacks Investment Research‘s target price points to a potential upside of 8.04% from the company’s previous close.

According to Zacks, “Shares of RH have declined so far this year. Earnings estimates for fiscal 2020 have been trending downward over the past 60 days, depicting analysts’ concerns over the stock’s bottom-line growth potential. Continued softness in the housing market over the last few quarters, and ongoing exit from unprofitable and non-strategic businesses are affecting its profitability. Nonetheless, the transformation to a membership model, rationalization of product offerings and the expansion of its chain of restaurants are raising optimism.”

A number of other research firms have also commented on RH. Wedbush reaffirmed an “outperform” rating and issued a $160.00 price objective on shares of Restoration Hardware in a research note on Monday, March 18th. Evercore ISI assumed coverage on Restoration Hardware in a research note on Wednesday, March 20th. They issued an “in-line” rating and a $145.00 price objective on the stock. Cowen reaffirmed a “market perform” rating and issued a $120.00 price objective (down from $150.00) on shares of Restoration Hardware in a research note on Friday, March 29th. Deutsche Bank lowered Restoration Hardware from a “buy” rating to a “hold” rating and cut their price objective for the stock from $185.00 to $124.00 in a research note on Friday, March 29th. Finally, Bank of America reaffirmed an “underperform” rating and issued a $85.00 price objective on shares of Restoration Hardware in a research note on Friday, March 29th. Four investment analysts have rated the stock with a sell rating, nine have given a hold rating and nine have given a buy rating to the company. The stock currently has a consensus rating of “Hold” and a consensus price target of $142.83.

Shares of RH stock opened at $85.15 on Thursday. Restoration Hardware has a 12 month low of $84.11 and a 12 month high of $164.49. The stock has a market cap of $1.78 billion, a PE ratio of 10.74, a PEG ratio of 0.83 and a beta of 1.52. The company has a current ratio of 0.74, a quick ratio of 0.16 and a debt-to-equity ratio of 26.22.

Restoration Hardware (NYSE:RH) last announced its quarterly earnings results on Thursday, March 28th. The company reported $3.00 EPS for the quarter, beating the Zacks’ consensus estimate of $2.83 by $0.17. Restoration Hardware had a return on equity of 522.94% and a net margin of 6.01%. The firm had revenue of $671.00 million for the quarter, compared to analyst estimates of $686.44 million. During the same period last year, the firm posted $1.69 earnings per share. The business’s revenue for the quarter was up .1% on a year-over-year basis. Equities analysts predict that Restoration Hardware will post 8.39 EPS for the current year.

An institutional investor recently bought a new position in Restoration Hardware stock. Hodges Capital Management Inc. bought a new position in Restoration Hardware Holdings, Inc (NYSE:RH) in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 3,807 shares of the company’s stock, valued at approximately $456,000.

Restoration Hardware Company Profile

RH, together with its subsidiaries, operates as a retailer in the home furnishings. It offers products in various categories, including furniture, lighting, textiles, bathware, 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.

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