Citron Research came out with a bullish call on RH Tuesday, saying that the stock can benefit from the new trend of the “de-urbanization of America”.
Shares of RH, previously known as Restoration Hardware, rose 1.9% in morning trading.
“Regardless of the possibility of a vaccine, the trend of moving out of cities to the suburbs for larger living spaces where people can work from home and the home is a sanctuary will be long-lasting,” Citron Research said in a note.
It put a 12-month target of $400 per share on the stock.
The “people who will be working at home are younger and have more disposable income,” it added.