RH price target raised to $300 from $230 at Baird

Baird analyst Peter Benedict raised the firm’s price target on RH to $300 from $230 and keeps a Neutral rating on the shares. The firm said its 2Q’s beat was largely timing-related with FY23 revenue/adj-EBIT margin guidance nudged higher and reaffirmed. While the macro/housing backdrop remains challenging, RH continues to anticipate a relative “inflection” in business trends across 2H23/into FY24 as Sourcebooks hit homes, Galleries are refreshed with new collections, and square foot growth accelerates.