RH

RH - Ordinary Shares - Class A

Consumer


Presented:08/11/2021
Price:$733.44
Cap:$15.42B
Current Price:$335.32
Cap:$6.20B

Presented

Date08/11/2021
Price$733.44
Market Cap$15.42B
Ent Value$22.97B
P/E Ratio52.97x
Book Value$28.28
Div Yield0%
Shares O/S21.03M
Ave Daily Vol509,909
Short Int13.94%

Current

Price$335.32
Market Cap$6.20B
RH operates as a holding company which operates the business through its subsidiary Restoration Hardware, Inc. It offers furniture, lighting, textiles, bath ware, decor, outdoor and garden, as well as baby and child products. The company operates an integrated business with multiple channels of distribution including galleries, source books and websites. The company was founded by Stephen J. Gordon in 1980 and is headquartered in Corte Madera, CA.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), RH (RH), WW International Inc (WW)

Highlights

The presenter is long shares of RH, formerly known as Restoration Hardware, a luxury furniture retailer currently trading at $730 per share. He sees several drivers that make the stock more appealing over the near term, including the strong housing cycle, RH’s real estate initiatives, and the opportunity around international business expansion. Based on these dynamics, he forecasts EPS of ~$30 next year and close to $40 the following year (vs. the Street’s $25 and $28, respectively). Using a slightly more conservative $35 FY2024 EPS estimate (FY2024 ends January 31, 2024) and a 25x - 30x earnings multiple yields a price target of $875 – $1,050 per share, or 20% – 44% upside over the next 18 months.

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Idea Discussion

Commentor 1 - 2 weeks ago

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