Citi analyst Steven Zaccone raised the firm’s price target on RH to $380 from $305 and keeps a Buy rating on the shares. Friday night’s regulatory filing included updated 4Q guidance with sales now expected at the low-end and EBIT margin at high-end, (the disclosure of $300M of company share repurchases in January, and the announcement that the miscalculation of discrete-tax items to GAAP earnings will require financial statement re-statements for Q1 through Q3 of 2022, the analyst tells investors in a research note. RH’s restatement is non-operational, not related to revenue, EBIT, or cash, and has no impact on forward earnings power, says Citi. The firm updated its model for the new guidance and buyback activity.
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