UPDATE: Deutsche Bank Initiates Coverage On Restoration Hardware On Positive Outlook

In a report published Thursday, Deutsche Bank analyst Adam Sindler initiated coverage on Restoration Hardware Holdings Inc (NYSE: RH) with a Buy rating and $90.00 price target.

In the report, Deutsche Bank noted, “We see significant potential in shares of RH as the company from a lower-scale mall operator to a best-in-class operator of larger design galleries. We expect this transformation to drive revenue growth in the 20% range and EPS growth in the 25% - 30% range over the next several years. We like RH for several reasons: 1) RH is in the very early innings of this real estate transformation, 2) RH has a relatively low market share in a healthy category, 3) current business is already completely direct / e-comm, so we see little impact to the P&L, and 4) we see potential room for upside in revenue guidance at the new stores. We also believe RH has one of the better management teams in our space.”

Restoration Hardware Holdings Inc closed on Wednesday at $74.98.