RH's Long-Term Potential Is 'Most Intriguing' In Retail, Says Morgan Stanley
Portfolio Pulse from Shivani Kumaresan
Morgan Stanley analyst Simeon Gutman reiterated an Equal-Weight rating on RH (NYSE:RH) and raised the price target from $260 to $355. The stock has rallied about 40% since Q1'23 earnings due to expectations for a top-line beat in Q2'23 and a pickup in share repurchases. However, the analyst warned that an upside on Q2 sales may reflect a low bar, rather than underlying trends improving. The analyst views RH as among the most intriguing stories in retail, with potential to transform its sales base/margin structure more than any other company in their coverage.
September 01, 2023 | 6:12 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Morgan Stanley analyst raised the price target for RH from $260 to $355, indicating a positive outlook. However, the analyst warned that Q2 sales may not reflect improving trends. The stock has potential for significant transformation in its sales base/margin structure.
The analyst's reiteration of an Equal-Weight rating and increase in price target indicates a positive outlook for RH. However, the caution about Q2 sales not necessarily reflecting improving trends could temper investor enthusiasm. The mention of RH's potential for significant transformation in its sales base/margin structure suggests long-term growth potential.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100