RH (NYSE:RH) shares were trading more than 8% higher today following the company’s reported Q2 results, with EPS of $8.48, beating the consensus estimate of $6.58. Revenue came in at 989 million, above the consensus estimate of $957, representing a 39% year-over-year growth.

Analysts at Wedbush raised their piece target on the company’s shares to $760 from $720 following the quarterly results.

According to the analysts, the company flowed through more than the beat to 2021 guidance on both sales and margins. The company’s confidence stems from demand growth in Q3-to-date on a two-year basis accelerating from Q2, the company’s expectations for a strong housing market particularly for larger luxury homes in suburbs and vacation areas—to continue to drive demand, and an improving trend in backorder create rates.

According to the brokerage, the company continues to push forward with European expansion for 2022, and sees the U.K. market contributing a very solid $50-$250m in sales in the first year of operation based on brand recognition among designers and the affluent, as well as its marketing plans. The analysts continue to see a very compelling opportunity in Europe, but execution will be key to realizing the company’s goals.