Richelieu Hardware (TSE:RCH) Stock Price Expected to Rise, National Bank Financial Analyst Says

Key Points

• National Bank Financial raised Richelieu Hardware’s price target to C$39.50 from C$38.50 while maintaining a “sector perform” rating, implying 4.17% upside. The broader analyst consensus remains “Hold,” with a C$39.25 target.
• Richelieu reported quarterly EPS of C$0.53 on C$562 million in revenue, with earnings reportedly up 23% year over year and above expectations. Growth was supported by acquisitions and continued expansion in the United States.
• Shares recently traded at C$37.92, while valuation concerns and profit-taking may limit gains after the post-earnings rally; the stock trades at roughly 24 times earnings.

Richelieu Hardware (TSE:RCH - Get Free Report) had its price objective boosted by stock analysts at National Bank Financial from C$38.50 to C$39.50 in a note issued to investors on Friday, BayStreet reports. The firm presently has a "sector perform" rating on the stock. National Bank Financial's price target suggests a potential upside of 4.17% from the company's previous close.

Separately, Canadian Imperial Bank of Commerce cut their target price on Richelieu Hardware from C$42.00 to C$39.00 in a research report on Monday, July 13th. One equities research analyst has rated the stock with a Hold rating, According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of C$39.25.

Richelieu Hardware Price Performance

Shares of TSE RCH traded down C$0.71 during mid-day trading on Friday, hitting C$37.92. 123,377 shares of the company's stock traded hands, compared to its average volume of 109,961. The company has a debt-to-equity ratio of 31.32, a current ratio of 3.04 and a quick ratio of 0.71. Richelieu Hardware has a 1 year low of C$33.91 and a 1 year high of C$45.03. The company's 50-day moving average is C$35.76 and its two-hundred day moving average is C$37.87. The company has a market capitalization of C$2.08 billion, a P/E ratio of 24.15, a PEG ratio of 0.77 and a beta of 0.84.

Richelieu Hardware (TSE:RCH - Get Free Report) last issued its quarterly earnings data on Thursday, October 8th. The company reported C$0.53 earnings per share for the quarter. Richelieu Hardware had a return on equity of 9.04% and a net margin of 4.34%.The company had revenue of C$562.00 million for the quarter.

Key Headlines Impacting Richelieu Hardware

Here are the key news stories impacting Richelieu Hardware this week:

• Positive Sentiment: Third-quarter EPS was C$0.53 on revenue of C$562 million, with earnings reportedly increasing 23% year over year and exceeding analyst expectations. The results provided a fundamental catalyst for the stock. Richelieu Hardware Third-Quarter Earnings Jump 23% YoY, Beat Forecast
• Positive Sentiment: Revenue growth benefited from acquisitions and continued expansion in the United States, supporting the view that Richelieu’s growth strategy is broadening its addressable market and strengthening future sales prospects. Richelieu Hardware earns higher Q3 revenue thanks to acquisitions and US growth
• Positive Sentiment: Market commentary characterized the quarterly performance as encouraging, highlighting improving operating momentum and the potential for additional gains from U.S. expansion. The earnings release initially pushed the stock substantially higher. Encouraging Signs at Richelieu Hardware
• Neutral Sentiment: Investors are assessing whether the strong results and U.S. growth justify the shares’ valuation after a sharp recent advance. Commentary points to a generally reasonable outlook, but limited room for disappointment if growth slows. Can Richelieu Hardware Stay Reasonable After 15% Gains?
• Negative Sentiment: Valuation concerns and profit-taking after the post-earnings rally appear to be weighing on the stock. With a reported P/E near 24, investors may be demanding continued strong execution from Richelieu Hardware. Is Richelieu Hardware Expensive on Strong Q3 Results and U.S. Expansion?

About Richelieu Hardware

Richelieu Hardware Ltd is a Canada-based company that imports, manufactures, and distributes specialty hardware and complementary products. Headquartered in Montreal, the company operates across Canada and the eastern and midwestern regions of the United States. The majority of the company's sales are derived from its operations in Canada. Richelieu's products include furniture, glass, decorative, window, and door hardware, lighting systems, and kitchen and closet storage. The firm primarily serves home furnishing manufacturers, residential and commercial woodworkers, hardware retailers, and renovation superstores.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.