The average analyst target now stands at $225, up from $135 at the beginning of the week, according to Bloomberg.
RH reported earnings Thursday for the quarter ended May 2.
“We are constructive on RH’s first-quarter 2020 earnings per share ($1.27 vs. Street’s $0.90) beat driven by a resilient [earnings before interest and taxes] margin beat (10% vs. Street’s 7.1%) and positive quarter-to-date trends as the environment continues to improve,” Cowen analyst Oliver Chen wrote in a commentary, Bloomberg reports.
He more than doubled his share-price target to $260 from $110 and rates RH market perform.
To be sure, that target already has been breached, with RH shares at last check trading at $271.05, up 9.1%,The stock has soared 31% over the three months through Thursday.
Chen said his bullishness already is reflected in the share price.
Other share-price target increases came from J.P. Morgan Securities, to $310 from $270; Stifel Nicolaus, to $300 from $265; and Guggenheim, to $300 from $140.
Guggenheim analyst Steven Forbes rates RH buy.
“Not only did RH’s first-quarter 2020 operating results come in ahead of our expectations, but second-quarter demand growth has returned to high-single digit positive” and should “accelerate even further” when RH stores fully reopen, he wrote in a commentary cited by Bloomberg.
That plus an “earlier-than-anticipated return of RH’s expansionary EBIT margin profile and real estate transformation efforts” in the second quarter led to the increase in Forbes’s share-price target.