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Investing.com — Restoration Hardware is overcooked.
Restoration Hardware got its only sell-equivalent rating from Jefferies (NYSE:JEF) with a price target of $320, according to StreetInsider.
Shares are down almost 5% to about $367. Shares reached an all-time high last week of almost $391.
“As a furniture business with 99% domestic exposure, we have difficulty justifying a market multiple on par with luxury goods players that have global brand validation,” said analyst Jonathan Matuszewski as he initiated coverage on the stock. “Management’s pursuit of the ‘path less traveled’ has largely worked the past few years, but we see inherent execution risk in the go-forward strategy with 9% downside to F’22EStreet EPS.”
Matuszewski is the only sell-equivalent rating on Restoration Hardware, which has eight buy ratings and five holds, with an average price target of $417.
Last month, as we nested through the pandemic, the company reported quarterly results that swept the estimates, with earnings per share of $4.90 compared to the estimated $3.41 on sales of $709 million when analysts had expected $701 million
