RH initiated with a Buy at Stifel

Stifel analyst W. Andrew Carter initiated coverage of RH with a Buy rating and $315 price target. With the shares , The firm believes the shares – down 68% from their August 2021 peak – undervalue the “robust growth outlook” given the “unmatched position of strength in North America” as well as international expansion and investment efforts, the analyst tells investors. The firm believes the strength of the RH platform was on “full display during the COVID-era,” and while it acknowledges that the weaker performance amid the category rightsizing has “rightfully attracted scrutiny,” Stifel argues that the performance deserves context that suggests the business is poised to inflect with key growth initiatives back on track.