Consumer Discretionary
$2000 anyone?! The TAIL earnings power is so much higher than the Street thinks - it’s almost ridiculous. The ecosystem RH is building is coming together quicker and stronger than expected. Global expansion will ensure ~20% top line growth for the foreseeable future, and unlike traditional retailers, RH has real pricing power. By year 5 of Brian McGough's financial model, he forecasts ~$8bn in revenue at a 25% EBIT margin - $50 per share in earnings (vs. $32 for the Street). Brian has been covering the stock since it IPO'd in 2012 and has never been more bullish. 200% upside.
Edition: 119
- 17 September, 2021