31 Aug

Analysts Are Bullish on At Home after Its Fiscal Q2 2019 Results

WRITTEN BY Victoria Dean

Rating summary

As of August 30, of the ten analysts covering At Home (HOME), 90.0% have recommended “buys” on its stock. The remaining 10% have rated it as a “hold.”

Analysts Are Bullish on At Home after Its Fiscal Q2 2019 Results

Following the company’s better-than-expected results for the fiscal second quarter of 2019 (which ended on July 28), Jefferies raised its price target to $47.00 from $45.00. We expect more changes in the coming days. At Home’s sales of $288.5 million and adjusted EPS of $0.34 topped Wall Street’s projections of $286.5 million and $0.33, respectively. Year-over-year, its sales and adjusted EPS rose 24.3% and 88.9%, respectively. Its top line benefited from its new store openings.

Currently, analysts’ 12-month average target price for HOME stock is $43.44, which reflects a 21.5% upside to its stock price as of August 30.

Where do its peers stand?

For Home Depot (HD), 77% of the 35 analysts covering its stock have given it “buy” ratings. The remaining analysts have given it “hold” ratings. The 12-month average target price for HD stock is $214.60, which reflects a 7.7% upside as of August 30.

For Williams-Sonoma (WSM), of the 26 analysts covering its stock, ~81% have rated it as a “hold.” Another 15% have rated it as a “sell.” The 12-month average target price for WSM stock is $62.05, which reflects a 9.1% downside.

For RH (RH), 33% of the 21 analysts covering its stock have recommended “buys,” while 62% have recommended “holds.” The 12-month average target price for RH stock is $150.06, which reflects a 4.4% downside.

HOME trades at a higher PE 

On August 30, At Home was trading at a 12-month forward PE ratio of 25.0x. Since its fiscal second-quarter results, the company’s valuation multiple has fallen 4.0%.

In contrast, RH, Williams-Sonoma, and Home Depot are trading at 12-month forward PE ratios of 21.9x, 15.4x, and 20.0x, respectively.

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