RH stock slides amid lowered guidance, analyst downgrades
RH shares fell lower on Monday over lowered guidance and some analyst downgrades.
- All right, time now for "Triple Play," Three stocks we're watching in the final 30 minutes of trading-- RH, Spotify, and Tyson Foods. Allie Canal playing ball with us today. My plays RH, the artist formerly known as Restoration Hardware, shares plummeting today on news of accounting errors, the home furnishings company announcing that prior to unaudited financial statements for 2022, quote, should no longer be relied upon due to material, unintentional errors within quarterly reports. RH also pre-announced full year growth at the lower end of the prior range of minus 3.5% to minus 4.5%. On the flip side Wedbush's Seth Basham points to a plan to repurchase 1.8 million shares as a signal of confidence from management. As a result, Basham raised his full year EPS forecast, maintaining a neutral rating while hiking his price target to 335 from 270, guys.
- Honestly, I think, you know, accounting issues aside, there's a lot of pros and cons with this company, and we've heard various commentary on the street. You mentioned some of those recent notes. We also heard from analysts at Telsey Advisory Group, and they wrote in a new note that RH is a solid brand with greater potential to accelerate growth in the medium to long term. However, there seems to be less demand for RH products overall and home furnishing, which will obviously drag sales throughout 2023. So definitely some major headwinds there.
And then if you think about the competition, too, that's obviously a big overhang in the background and shares. They're still fighting to bounce back from where they were last year, still off about 20%