RH negative sentiment skews risk/reward to upside, says JPMorgan
Negative investor sentiment skews the risk/reward on RH shares to the upside into the retailer's Q4 results on March 28, JPMorgan analyst Tami Zakaria tells investors in a research note. The analyst says her conversations with clients suggest sentiment on RH has turned "incrementally bearish" with investors expecting a potential guide-down of the previously announced 8%-12% revenue growth in 2019. However, Zakaria views the concerns as overblown as keeps an Overweight rating on RH with a $180 price target. Further, with the stock's short interest ratio remaining high at ~35%, a squeeze could materialize should the results come in better than already feared, says the analyst.