Why This RH Analyst Is Slashing Price Target By Almost 50%

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RH's sales are gaining momentum and margins have inflected positive, with easy comps suggesting expansion through the first half of 2025, according to JPMorgan.  

The RH Analyst: Analyst Christopher Horvers reiterated an Overweight rating, while slashing the price target from $510 to $250.

The RH Thesis: The estimates for the company have been revised after the release of fourth-quarter results and 2025 guidance, Horvers said in the note.

Check out other analyst stock ratings.

RH reported its fourth-quarter sales at $812 million and earnings at $1.58 per share, missing consensus projections of $830 million and $1.91 per share, respectively. Management guided to 2025 sales growth of 10%-13%, below consensus of 13.4%.

The analyst cut the adjusted earnings estimates for 2025 and 2026 from $13.16 to $11.28 per share and from $17.58 to $14.46 per share, respectively.

Uncertainty related to tariffs has weighed on the stock, which is now trading "at the low end of the valuation range," he further stated.

RH Price Action: Shares of RH are down 2.81% to $160 at the time of publication on Monday.

Read More:  
Trump’s 90-Day Tariff Pause Sends RH Stock Surging, Reversing Heavy Losses from Earnings Miss, Trade War Fears

Photo: Helen89 via Shutterstock

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