RH price target raised to $335 from $270 at Wedbush

Wedbush analyst Seth Basham raised the firm’s price target on RH to $335 from $270 and keeps a Neutral rating on the shares. The firm notes RH filed an 8-k indicating it would restate and its financials for the nine months ending Q3 2022 and announced preliminary full year 2022 results. The results came in below consensus expectations on the top-line but were better in terms of operating margin. Despite the sales miss, the company expects full year operating margins near the high-end its 2022 that implied 14.6%-16.6% operating margins in Q4. This compares favorably to Wedbush’s 15.6% forecast but suggests less so relative to consensus’ 16.2%.