- A longtime fan of RH (NYSE:RH), Andrew Left says the company could be an acquisition target in 2020. He takes note of LVMH's purchase of Tiffany at a "premium multiple" despite TIF's low growth, stiff competition, and out-of-favor brand, and says RH at a similar valuation might fetch $350 vs. the current $212.
- Possible buyers: Berkshire Hathaway (BRK.A, BRK.B), Amazon (NASDAQ:AMZN), LVMH (OTCPK:LVMHF), or a P-E player.
- Left continues to short Wayfair (NYSE:W) as a hedge.
- Citron's top short is Peloton (NASDAQ:PTON), with Left reiterating his $5 price target (vs. the current $30). Even at that low stock price, the company would be the most valuable exercise company in the world, worth $1.5B.
- Citron returned 43.3% net of fees in 2019.
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