Street Calls of the Week
Investing.com - UBS maintained its Neutral rating and $215.00 price target on Restoration Hardware (NYSE:RH) following the company’s second-quarter earnings report. The current stock price of $224.4 sits within a wide analyst target range of $179 to $385, reflecting the market’s uncertainty about the luxury furniture retailer’s prospects.
The investment firm described RH’s second-quarter results as "messy" and indicated that near-term earnings estimates for the luxury furniture retailer are likely to be revised downward.
UBS noted that the expected inflection point for RH’s business performance has been delayed again, creating uncertainty about the company’s near-term trajectory.
The firm believes investors remain without clear visibility on whether forward earnings estimates have fully bottomed out for Restoration Hardware.
UBS concluded that the current lack of visibility into RH’s performance creates a balanced risk-reward profile for the stock, supporting its unchanged Neutral stance.
In other recent news, Restoration Hardware reported its second-quarter earnings for fiscal 2025, revealing results below expectations. The company posted an EPS of $2.93, falling short of the forecasted $3.18, and its revenue reached $899.2 million, which was also below the expected $906.58 million. Following these results, the company revised its full-year 2025 guidance to reflect a softer revenue outlook. Stifel responded to these developments by lowering its price target for Restoration Hardware from $390.00 to $320.00, although the firm maintained a Buy rating on the stock. TD Cowen, meanwhile, raised its price target from $235.00 to $265.00, highlighting a favorable top-line setup despite concerns about EBIT margins. KeyBanc reiterated its Sector Weight rating on the stock, noting that the company adjusted its guidance due to new tariffs and a delay in releasing its Sourcebook catalog. These recent developments have drawn varied responses from analysts, reflecting differing perspectives on the company’s future performance.
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