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

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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.”

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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