Bank of America Securities analyst Curtis Nagle reiterated a Buy rating on RH (RH – Research Report) today and set a price target of $410.00.
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Curtis Nagle has given his Buy rating due to a combination of factors that suggest RH is well-positioned for future growth despite some near-term challenges. Nagle forecasts RH’s fourth-quarter sales and earnings to be slightly above market expectations, driven by new product introductions, marketing efforts, and gallery openings. This indicates a strong performance in the face of a challenging macroeconomic environment.
Although there are concerns about consumer discretionary spending and a softer macroeconomic outlook, RH continues to gain market share and is poised for significant earnings per share (EPS) growth. The company’s investments in products and galleries are largely complete, positioning it well for future profitability. Additionally, the current trading price of RH shares presents an attractive entry point, as it is below the historical average valuation, making it a compelling investment opportunity according to Nagle.
Nagle covers the Consumer Cyclical sector, focusing on stocks such as Wayfair, ACV Auctions, and Etsy. According to TipRanks, Nagle has an average return of -3.7% and a 47.20% success rate on recommended stocks.
In another report released on March 24, Citi also maintained a Buy rating on the stock with a $437.00 price target.