Goldman Sachs analyst Kate McShane upgraded RH (RH) to Neutral from Sell with a price target of $374, up from $261. The firm sees a shift in demand trends for RH despite a “depressed” housing environment, driven by new product and heavy marketing. In addition, the company has changed in its supply chain, reducing exposure to China and Mexico, and its heavier investments for growth seem to be now be behind, the analyst tells investors in a research note. Goldman adds RH’s guidance indicates free cash flow can turn positive next year.
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