Restoration Hardware Holdings Inc (NYSE:RH) stock was up on Friday following an upgrade by analysts at Goldman Sachs.
Goldman Sachs analyst Matthew Fassler upgraded Restoration Hardware stock from a “Neutral” rating to a “Buy” rating in a recent research note to investors. The analyst claims that RH will see tough quarters in 2016, but that it will start to recover during the fourth quarter of the year.
Fassler also increased his 12-month target price for Restoration Hardware stock. The Goldman Sachs analyst is now expecting the company to reach a target price of $40. This is 30% above the stock’s closing price on Thursday and an 8% increase over Fassler’s previous target price of $37 for the stock, reports MarketWatch.
“In a sense, we expect RH to deliver the refresh to vitality that the market originally expected a year ago, but which was derailed by the firm’s struggles and high-end macro headwinds,” the Goldman Sachs analyst said in his research note.
Restoration Hardware is currently being covered by 20 different analysts. The consensus rating among these analysts currently have RH stock with a “Hold” rating. The 13 analysts that provide target prices for the company have an average price of $36.31 for RH stock. This is roughly an 18% increase from the stock’s closing price on Thursday.
Restoration Hardware latest earnings report had it disappointing investors. This included reporting revenue of $455.46 million and losses per share of five cents. Wall Street was looking for revenue of $452.14 million with earnings per share of 5 cents, Review Fortune notes.
RH stock was up 7% as of Friday afternoon.
More From InvestorPlace:
