Wells Fargo & Company Forecasts Strong Price Appreciation for RH (NYSE:RH) Stock

Key Points

• Wells Fargo & Company has raised its price target for RH stock from $275 to $295, indicating a potential upside of 17.54% based on recent closing prices.
• While Wells Fargo maintains an "overweight" rating, other analysts have mixed views, with Tudor Pickering & Holt setting a target of $215 and Bank of America lowering theirs from $144 to $172.
• RH recently outperformed earnings expectations with a report of $0.13 earnings per share, previously projected at a loss, and expects to post 4.39 EPS for the fiscal year.

RH (NYSE:RH - Get Free Report) had its price objective boosted by investment analysts at Wells Fargo & Company from $275.00 to $295.00 in a research report issued on Monday,Benzinga reports. The brokerage currently has an "overweight" rating on the stock. Wells Fargo & Company's price objective would indicate a potential upside of 17.54% from the stock's previous close.

Several other analysts have also recently issued reports on the company. UBS Group dropped their target price on RH from $235.00 to $215.00 and set a "neutral" rating on the stock in a research report on Thursday, June 5th. Robert W. Baird lifted their price objective on RH from $215.00 to $230.00 and gave the company a "neutral" rating in a research note on Monday, June 16th. Telsey Advisory Group restated an "outperform" rating and issued a $255.00 price target on shares of RH in a research note on Monday. Zelman & Associates lowered their price objective on RH from $305.00 to $251.00 and set an "outperform" rating on the stock in a report on Wednesday, July 9th. Finally, Bank of America lifted their price objective on RH from $144.00 to $172.00 and gave the stock an "underperform" rating in a report on Wednesday, May 14th. Ten investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat, RH has a consensus rating of "Hold" and a consensus price target of $273.47.

RH Stock Performance

RH stock opened at $250.98 on Monday. The stock has a fifty day moving average of $215.53 and a 200 day moving average of $211.28. The stock has a market cap of $4.70 billion, a PE ratio of 59.76, a price-to-earnings-growth ratio of 0.73 and a beta of 2.15. RH has a one year low of $123.03 and a one year high of $457.26.

RH (NYSE:RH - Get Free Report) last released its quarterly earnings data on Thursday, June 12th. The company reported $0.13 earnings per share for the quarter, topping analysts' consensus estimates of ($0.07) by $0.20. The firm had revenue of $813.95 million during the quarter, compared to analyst estimates of $817.66 million. RH had a negative return on equity of 67.71% and a net margin of 2.57%.The business's quarterly revenue was up 12.0% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.40) earnings per share. RH has set its Q2 2025 guidance at EPS. FY 2025 guidance at EPS. As a group, sell-side analysts predict that RH will post 4.39 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. increased its stake in shares of RH by 0.6% during the 1st quarter. Vanguard Group Inc. now owns 1,409,962 shares of the company's stock worth $330,509,000 after purchasing an additional 7,952 shares in the last quarter. Senvest Management LLC boosted its holdings in shares of RH by 54.6% in the 2nd quarter. Senvest Management LLC now owns 733,894 shares of the company's stock valued at $138,713,000 after purchasing an additional 259,200 shares during the last quarter. Durable Capital Partners LP grew its stake in shares of RH by 125.1% during the 2nd quarter. Durable Capital Partners LP now owns 646,097 shares of the company's stock valued at $122,119,000 after buying an additional 359,101 shares during the period. Atreides Management LP grew its stake in shares of RH by 69.1% during the 1st quarter. Atreides Management LP now owns 473,321 shares of the company's stock valued at $110,951,000 after buying an additional 193,404 shares during the period. Finally, Geode Capital Management LLC grew its stake in shares of RH by 0.7% during the 2nd quarter. Geode Capital Management LLC now owns 265,762 shares of the company's stock valued at $50,240,000 after buying an additional 1,829 shares during the period. 90.17% of the stock is owned by hedge funds and other institutional investors.

RH Company Profile

RH, together with its subsidiaries, operates as a retailer in the home furnishings market. The company offers products in various categories, including furniture, lighting, textiles, bathware, décor, outdoor and garden, baby, child, and teen furnishings. It provides its products through rh.com, rhbabyandchild.com, rhteen.com, rhmodern.com, and waterworks.com online channels, as well as operates RH Galleries, RH outlet stores, RH Guesthouse, and Waterworks showrooms in the United States, Canada, the United Kingdom, and Germany.

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