Credit: Shutterstock photoInvestorPlace InvestorPlace - Stock Market News, Stock Advice & Trading Tips
Restoration Hardware Holdings Inc ( RH ) stock jumped on Wednesday following rumors of a Williams-Sonoma, Inc. ( WSM ) buyout.
BB&T analyst Anthony Chukumba said that a buyout of Restoration Hardware by Williams-Sonoma would make sense. He also noted that company's recent poor quarter and problems with keeping supplies of its RH Modern collection as reasons for the acquisition.
"While we believe RH management could potentially oppose a transaction, citing the company's fairly recent glory days, we think continued struggles and/or the involvement of an activist investor could leave it with no choice but to explore a deal," Chukumba wrote in a letter to investors obtained by Investor's Business Daily .
RH shares were up 7% and WSM shares were up 3% as of Noon Wednesday.
More From InvestorPlace:
- 10 Stocks You Should Buy at a Moment's Notice
- 9 Stocks to Buy Now for 21%-Plus Profit Growth
- 10 All-American Stocks to Buy Now
The post RH, WSM: Restoration Hardware Holdings Inc Stock Spikes on Williams-Sonoma, Inc. Buyout Rumors appeared first on InvestorPlace .
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
