RH cut to Hold at Loop Capital on valuation

As previously reported, Loop Capital analyst Anthony Chukumba downgraded RH (RH) to Hold from Buy with an unchanged $300 price target. The analyst notes that the rating change is driven by the stock’s current valuation rather than a more bearish view of the company’s fundamentals. RH has a unique merchandise assortment, innovative full-line design galleries, and one of the strongest brands in the home furniture and furnishings sector, but with the stock trading at over 29-times expected FY23 earnings, the current valuation levels are in line with Loop’s bullish outlook, the firm tells investors in a research note. Loop Capital instead recommends Williams-Sonoma (WSM) to investors seeking home furniture and furnishings retailing exposure.