RH Analyst Bullish As Company Addresses 3 Issues Including Tariff Exposure

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RH released a statement on Friday, providing details on three areas: its tariff exposure, demand trend quarter-to-date and free cash flow guidance, according to Telsey Advisory Group.

The RH Analyst: Analyst Cristina Fernández maintained an Outperform rating and price target of $280.

The RH Thesis: The company significantly reduced its exposure to China in recent years by sourcing from Vietnam instead and has plans to increase its U.S. exposure, Fernández said in the note.

Check out other analyst stock ratings.

RH purchased 23% of products in China in 2024, down from 41% in 2018, and plans to increase its U.S. exposure to 14%, from 10% in 2024, she added.

The company witnessed strong demand so far in the first quarter, despite the challenging macro and the trends support its revenue growth guidance of 12.5%-13.5% for the quarter, the analyst stated.

Management provided free cash flow guidance for 2025 at $250 million to $350 million, she further said.

"RH’s demand growth at 17% quarter-to-date is better than its peers’ driven by product newness and increased catalog circulation," Fernández wrote. The company "has the potential to weather tariffs as its higher price points and affluent consumer base give it more pricing power," she added.

RH Price Action: Shares of RH had risen by 15.19% to $167.48 at the time of publication on Monday.

Read More:  
These Analysts Slash Their Forecasts On RH Following Downbeat Results

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