SolStock
Shares of RH (NYSE:RH) gained as much as 4.7% to $266.45 in Wednesday’s trading session, after William Blair resumed coverage on the upscale home-furnishings retailer with an outperform rating as it believes the company is well-positioned for growth and margin expansion, despite near-term headwinds.
It is worth noting that RH stock has been on a downward trend since the company reported Q2 results on Sept. 8, posting a characteristic beat on top and bottom lines but forecasting continued softening for sales.
“While we acknowledge the potential for near-term volatility over the next few months around a tough housing market and looming recession, we believe (RH’s) valuation remains compelling,” William Blair analyst Phillip Blee said in a research note.
Blee did note that the luxury housing market was expected to remain particularly challenged after two years of record demand, low inventory and steep price increases.
However, Blee believes the company “remains well positioned for long-term top-line growth and margin expansion, despite some near-term headwinds.”
William Blair’s outperform rating on the stock compares to a Wall Street average rating and a SA Authors rating of buy, while Seeking Alpha’s Quant system, which consistently beats the market, rates it hold.
Image and article originally from seekingalpha.com. Read the original article here.