Wedbush upgrades RH on ‘building momentum’ in product transition

Wedbush upgraded RH (RH) to Outperform from Neutral with a price target of $430, up from $310, after meeting with management. The firm came away from the meetings more confident in the “building momentum” in the company’s “extraordinary product transition.” Accelerating store openings should drive top- and bottom-line upside for at least the next two years, the analyst tells investors in a research note. Wedbush says RH has been introducing new products that are “trend-right, with much lower price points and good quality.” This creates a “compelling value proposition for its core aspirational luxury customer that had ventured elsewhere,” the firm contends.