Benzinga | Sep 9, 2021 12:11PM EDT

Why RH Shares Are Trading Higher Today

RH (NYSE:RH) is trading higher Thursday after the company announced better-than-expected second-quarter financial results.

RH reported adjusted quarterly earnings of $8.48 per share, which beat the estimate of $6.48 per share. The company reported quarterly revenue of $988.86 million, which beat the estimate of $975.45 million.

RH expects full-year fiscal 2021 revenue growth of 31% to 33% versus its prior outlook of 25% to 30%.

"Our demand growth has accelerated during the third quarter on a two-year basis and has continued to build momentum despite cycling the most difficult comparisons from a year ago and the continued supply chain challenges that have been amplified by the spread of the delta variant," said Gary Friedman, chairman and CEO of RH.

Analyst Assessment: Multiple analyst firms raised price targets on the stock following the results:

* Telsey Advisory Group maintained RH with an Outperform rating and raised the price target from $725 to $770.

* Wells Fargo analyst Zachary Fadem maintained RH with an Overweight rating and raised the price target from $725 to $800.

* UBS analyst Michael Lasser maintained RH with a Neutral rating and raised the price target from $660 to $700.

RH Price Action: RH has traded as high $744.56 and as low as $310.30 over a 52-week period.

The stock was up 8.61% at $730.59 at time of publication.

Photo: Chien Than from Pixabay.