NEW YORK (TheStreet) -- Restoration Hardware Holdings (RH) - Get Report stock is declining by 0.01% to $41.90 in after-hours trading on Thursday, as Barclays initiated coverage of the stock with an "equal weight" rating and a $50 price target.

Before the firm takes a bullish stance, the company must battle several challenges first, including its decelerating results.

On Tuesday afternoon, the CA-based luxury home furnishings retailer released its 2015 fourth quarter results, posting earnings of 98 cents a share on revenue of $647.2 million.

Both profit and revenue missed analysts' projections of $1.39 a share on revenue of $710.9 million. 

Overall, "Our macro view makes us cautious on owning highly cyclical companies at this stage, particularly those undergoing a highly capital intensive transformation," analysts said in a note issued to investors today. 

However, the firm is confident in the company's long-term vision.

Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C.

The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and disappointing return on equity.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles' author.

You can view the full analysis from the report here: RH

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