Thursday's Goldman Sachs (NYSE:GS) Restoration Hardware (NYSE:RH) upgrade goosed the stock by nearly 10%, driving it above its June-August resistance at 32, unleashing the upside potential to 36.30/60 -- and to 39-40 implicit in the combustion out of its multi-month base formation.
While RH is considered to be a takeover target, the GS upgrade certainly caught short-sellers by surprise, and is likely to increase speculation about potential M&A activity in the near future.
Goldman's research lifts the RH brand out of the dungeon and breathes new life into the name. I remain long at 31.01 for The Model Portfolio.