Jefferies initiates coverage on Restoration Hardware (NYSE: RH) with a Buy and $68 price target, calling it the best growth story in retail.
Analyst John Marrin comments, "We initiate coverage on Restoration Hardware with a Buy and a $68 target. We see three reasons investors should own this name: 1) this is the best growth story in retail - we forecast a five-year sales CAGR of 20%; 2) easy opportunities for operating margin expansion; and 3) a unique sourcing model that should keep RH on the home fashion forefront and drive market-share gains."
Reminds me of Lululemon 3 years ago -- a big ramp ahead, expensive, but will stay that way - as the growth continues. 77 Stores -- could be 300