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Shares of RH (NYSE:RH) were up 1.4% in Tuesday trading and are up nearly 39% so far this year.
TD Cowen said in a note that it did a study of luxury interior designers in England. It found that RH had high awareness in England’s designer community, with 76% saying they knew the brand.
RH’s recently unveiled new gallery in England is creating buzz, and about half the designers in TD Cowen’s study were aware of it.
The analysts raised their price target on the stock to $420 a share from $280. The shares are currently trading around $370, implying a 13% gain from here. They rate the stock an Outperform.
TD Cowen said designers tend to know RH as a brand from working with American clients or having visited its showrooms while in the United States. They see demand from aspirational clients, while the highest-tier clients could use RH to accessorize their homes.
“RH remains in the earlier innings of a multi-year transformation journey driven by new gallery and product launches, despite near-term macro headwinds,” the analysts said.
