“Yesterday (Mar. 28th) after the market close, Perform-rated RH (RH) reported fiscal Q4:18 (Jan. 2019) results and updated guidance for FY19 (Jan. 2020). Shares are trading down markedly, upon indications of a weaker than expected end to last year and beginning of 2019. Management outlined clearly that the combination of macro challenges and some internal issues has weighed upon sales trends at the chain over the past several weeks. As we have indicated, we admire immensely the strategic direction of RH. We nonetheless continue to fret over what we view as lacking operational and financial controls at the company. We continue to monitor RH closely and will be back with more detailed research commentary as needed.”
According to TipRanks.com, Nagel is a 5-star analyst with an average return of 8.7% and a 64.6% success rate. Nagel covers the Services sector, focusing on stocks such as Weight Watchers International, Capri Holdings Limited, and Dick’s Sporting Goods.
Currently, the analyst consensus on RH is a Moderate Buy with an average price target of $137.11, implying a 21.6% upside from current levels. In a report released today, Deutsche Bank also downgraded the stock to Hold with a $124 price target.
RH’s market cap is currently $2.8B and has a P/E ratio of 30.98. The company has a Price to Book ratio of 87.39.
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RH is a holding company which operates the business through its subsidiary Restoration Hardware, Inc. It offers furniture, lighting, textiles, bathware, decor, outdoor and garden, as well as baby and child products. The company operates an integrated business with multiple channels of distribution including galleries, source books and websites.