RH downgraded to Market Perform at Telsey Advisory following 29% rally

As previously reported, Telsey Advisory analyst Cristina Fernandez downgraded RH to Market Perform from Outperform with a price target of $330, up from $310. The firm expects RH to trade down today, February 6, following RH having made several disclosures in its 8-K and proxy filings on Friday, February 3, including having updated its 2022 guidance, disclosing it found several mistakes after reviewing SEC comments on prior financial statements, stating it plans a revision to the effective tax rate, and identifying a material weakness in its internal control over financial reporting. However, the firm said its rating change is not related to the accounting error or restatement of financial statements, but its view that shares seem fairly valued with the stock up 29% since the company’s Q3 report on December 8.