RH's stock fell by 5.03% as it hit a 5-day low, reflecting ongoing challenges in the housing market.
Despite facing the worst housing market in nearly 50 years, RH reported $884 million in revenue for Q3, a 9% increase, showcasing resilience and market share growth. The company has expanded into Europe with lavish galleries in cities like Paris, London, and Milan, which is expected to drive future revenue growth. Additionally, CEO Gary Friedman has implemented a successful membership model and share buyback strategy, repurchasing approximately 25% of outstanding shares in 2023, setting the stage for future earnings growth.
The implications of RH's performance indicate a strong potential for recovery as the housing market stabilizes, with management's strategies positioning the company for long-term profitability.
Wall Street analysts forecast RH stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for RH is 203.45 USD with a low forecast of 144.00 USD and a high forecast of 283.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
Wall Street analysts forecast RH stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for RH is 203.45 USD with a low forecast of 144.00 USD and a high forecast of 283.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Buy
6 Hold
2 Sell
Hold
Current: 204.550
Low
144.00
Averages
203.45
High
283.00
Current: 204.550
Low
144.00
Averages
203.45
High
283.00
TD Cowen
Buy
upgrade
$200 -> $265
2026-01-20
Reason
TD Cowen
Price Target
$200 -> $265
AI Analysis
2026-01-20
upgrade
Buy
Reason
TD Cowen raised the firm's price target on RH to $265 from $200 and keeps a Buy rating on the shares. The firm adjusted targets in the hardlines group. Planet Fitness is TD's top idea, followed by Home Depot and O'Reilly Automotive.
Morgan Stanley
Overweight
downgrade
$300 -> $250
2025-12-19
Reason
Morgan Stanley
Price Target
$300 -> $250
2025-12-19
downgrade
Overweight
Reason
Morgan Stanley lowered the firm's price target on RH to $250 from $300 and keeps an Overweight rating on the shares. The firm admits to having gotten the catalyst path wrong on this higher-risk cyclical retailer as it did not anticipate the headwinds to demand generation from the delay in Fall/Winter Sourcebook launches and it is lowering its 2025-27 revenue growth estimates. However, the firm argues that the "pivotal factor" in the medium- and long-term is RH's ability to generate positive free cash flow and not require external liquidity.
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JPMorgan
Overweight
downgrade
$275 -> $225
2025-12-19
Reason
JPMorgan
Price Target
$275 -> $225
2025-12-19
downgrade
Overweight
Reason
JPMorgan lowered the firm's price target on RH to $225 from $275 and keeps an Overweight rating on the shares. RH "roughly hit" the midpoint of its Q3 top-line guidance, but operating margin came in below the low end of its forecast due to gross margin impacts from tariffs and promos along with sourcebook and pre-opening costs, the analyst tells investors. Given comments in RH's release about how companies are "rewarded for putting conservative guidance out," the firm suspects management is "trying to do a bit of a reset," but confidence is low and the firm is again lowering its forecasts, the analyst added.
Barclays
Seth Sigman
Overweight -> Overweight
downgrade
$385 -> $283
2025-12-15
Reason
Barclays
Seth Sigman
Price Target
$385 -> $283
2025-12-15
downgrade
Overweight -> Overweight
Reason
Barclays analyst Seth Sigman lowered the firm's price target on RH to $283 from $385 and keeps an Overweight rating on the shares following the Q3 report. The company's revenue was relatively in line for Q3 but tariffs are creating more pressure, driving estimates lower, the analyst tells investors in a research note.
About RH
RH is a retailer and luxury lifestyle brand operating primarily in the home furnishings market. The Company offers collections through its retail galleries, sourcebooks, and online at RH.com, RHModern.RH.com, RHBabyandChild.RH.com, RHTEEN.RH.com and Waterworks.com. The Company offers merchandise assortments across a number of categories, including furniture, lighting, textiles, bathware, decor, outdoor and garden, and baby, child and teen furnishings. Its segments include RH Segment, Waterworks and Real Estate. The RH Segment and Waterworks segments include all sales channels accessed by its customers, including sales through retail locations and outlets, including hospitality, websites, sourcebooks, and the trade and contract channels. The Real Estate segment represents operations associated with certain of its equity method investments and consolidated variable interest entities that are non-wholly owned subsidiaries and have operations that are not directly related to its segments.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
