NEW YORK (TheStreet) -- Restoration Hardware Holdings (RH) - Get Report stock was upgraded to "strong buy" from "outperform" at Raymond James even though the home furnishing company delivered weak preliminary results for the fiscal 2015 fourth quarter this week, Barron's reports.
"The selloff in the shares even prior to the 4Q pre-release appears to be have driven by the less certain macro environment and near-term challenges that Restoration Hardware will likely face through the first part of FY16," analysts noted, according to Barron's.
The company is expected to see "significant sales and earnings growth" over the next few years because of its "ongoing real estate transformation," analyst added.
After Wednesday's market close, the Corte Madera, CA-based company reported preliminary earnings of 99 cents per share on revenue of $647.21 million for the quarter ended January 30.
Wall Street was anticipating earnings of $1.35 per share on revenue of $707.73 million for the quarter.
The company will report its full fiscal fourth quarter financial results on March 23.
Restoration Hardware stock closed higher by 5.04% to $40.43 on heavy trading volume on Friday. By the end of the trading day, 6.37 million shares had exchanged hands, compared with its average daily volume of 1.87 million shares.
Separately, Restoration Hardware has a "hold" rating and a letter grade of C at TheStreet Ratings because of the company's strengths, such as revenue growth, reasonable valuation levels and growth in earnings per share, and its weaknesses, including generally disappointing stock performance and weak operating cash flow.
You can view the full analysis from the report here: RH
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's author.