Analysts Praise Red-Hot RH Stock Ahead of Earnings

There is still a hefty amount of short interest as well

Deputy Editor

Sep 2, 2020 at 10:42 AM

The shares of RH (NYSE:RH), formerly known as Restoration Hardware, have pulled back after a run-up to yesterday's record high of $345.46, despite a pair of bull notes from UBS and Wedbush, which hiked their price targets to $360 and $350, respectively. Wedbush expects strong second-quarter earnings results from RH, which are due out next week, as well as long-term growth, should demand remain high. At last check, RH is down 4.32% at $336.52

RH has seen an impressive climb higher since its March sell-off, quickly eclipsing its former peak at the $252 mark in June. Since then, the equity has strung together an impressive series of record highs, with support at the 10-day moving average. Currently, the stock is up 59.6% year-to-date.

There is plenty of room for analysts to chime in with upgrades/price-target hikes as well, with eight of the 14 in coverage at a "strong buy," and the remaining six a "hold." Also, the 12-month consensus price target of $289.69 is a 15% discount to last night's close.

Meanwhile, though short interest has been dropping during the last two reporting periods, these bears still make up 25.14% of the stock's available float. In other words, the 4.37 million shares sold short would take over five days to cover at RH's average pace of trading.

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