Should You Buy RH (RH) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Hold
Latest Price
204.550
1 Day change
-2.51%
52 Week Range
436.990
Analysis Updated At
2026/01/26
RH does not present a strong buy opportunity for a beginner, long-term investor at this time. While the company has shown some positive financial performance and growth initiatives, the lack of strong trading signals, insider selling, and mixed analyst sentiment suggest holding off for now.
Technical Analysis
The technical indicators show a mixed picture. The MACD is positive and contracting, suggesting some bullish momentum, and the moving averages are bullish (SMA_5 > SMA_20 > SMA_200). However, the RSI is neutral at 62.406, and the stock is trading pre-market at $225.92, slightly below the pivot level of $222.684. This indicates no clear breakout or strong upward momentum.
Options Data
Neutral
Open Interest Put-Call Ratio
Bearish
Option Volume Put-Call Ratio
The options data shows a balanced sentiment with an Open Interest Put-Call Ratio of 1.0 and a slightly bearish Option Volume Put-Call Ratio of 1.18. Implied volatility is high at 94.82, indicating elevated uncertainty.
Technical Summary
Sell
7
Buy
6
Positive Catalysts
RH reported an 8.88% YoY revenue increase in Q3 2026 and a 9.34% YoY net income increase. The company has expanded its market by launching galleries in European cities and implemented a membership model that has improved customer retention and sales. Additionally, RH repurchased 25% of its outstanding shares in 2023 to enhance EPS and prepare for market recovery.
Neutral/Negative Catalysts
Insider selling has increased significantly by 470.54% over the last month, which could indicate a lack of confidence in the stock's near-term performance. Analysts have lowered price targets recently, citing challenges such as tariffs, weaker demand, and a challenging housing market. Additionally, the gross margin dropped by -0.92% YoY, and there are no recent congress trading data or strong trading signals.
Financial Performance
In Q3 2026, RH reported revenue of $883.81M, up 8.88% YoY, and net income of $36.27M, up 9.34% YoY. EPS increased by 10.24% YoY to $1.83. However, the gross margin dropped to 44.1%, down -0.92% YoY, indicating some pressure on profitability.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analysts have mixed ratings on RH. TD Cowen recently raised its price target to $265 and maintains a Buy rating, while Morgan Stanley, JPMorgan, and Barclays lowered their price targets, citing challenges such as tariffs, weaker demand, and profitability concerns. Stifel downgraded the stock to Hold, and BofA maintains an Underperform 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 USD and a high forecast of 283 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 USD and a high forecast of 283 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: 209.810
Low
144
Averages
203.45
High
283
Current: 209.810
Low
144
Averages
203.45
High
283
TD Cowen
Buy
upgrade
$200 -> $265
AI Analysis
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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