10:05 AM EDT, 03/28/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target of $310, up $36, is 21.5x our FY 25 EPS view of $14.44 (FY 24 up $0.23 to $8.76), in line with the 10-year forward P/E average. We think our newly set FY 25 EPS reflects a better representation of consumer uptake of recently introduced products. We also project lower gross and EBIT margins than consensus for FY 24. We attribute this to a promotional environment, higher logistic costs due to geopolitical disruptions, and flushing of old inventory. FQ1 adj-EPS of $0.72 (-75% Y/Y) missed by $0.99 on revenue of $738M (-4.4% Y/Y), $40M below consensus. The revenue miss is attributable to shipping delays and January weather, but is projected to be realized in FY 24. Adj-gross and adj-EBIT margins fell 440 bps and 750 bps to 43.5% and 9.1%. Consumer budgets remain stretched after a two-year period of high interest rates; however, RH's targeting of the wealthier consumer could prove successful amid markets reaching all-time highs in 2024. We project FY 24 revenue growth of +7% and EPS of +27%.