Morgan Stanley Cuts RH (NYSE:RH) Price Target to $240.00

RH (NYSE:RH) had its target price cut by Morgan Stanley from $275.00 to $240.00 in a report issued on Wednesday,Benzinga reports. The brokerage presently has an “overweight” rating on the stock. Morgan Stanley’s price objective suggests a potential upside of 115.37% from the company’s current price.

Several other equities research analysts have also commented on the company. TD Cowen lowered their price objective on RH from $265.00 to $200.00 and set a “buy” rating on the stock in a research report on Monday. Wells Fargo & Company cut their target price on shares of RH from $250.00 to $225.00 and set an “overweight” rating for the company in a report on Friday, March 13th. Stifel Nicolaus reiterated a “hold” rating and issued a $165.00 target price (down from $320.00) on shares of RH in a research note on Friday, December 12th. Telsey Advisory Group lowered their price target on shares of RH from $185.00 to $165.00 and set a “market perform” rating on the stock in a report on Wednesday, March 25th. Finally, Zacks Research upgraded shares of RH from a “strong sell” rating to a “hold” rating in a research report on Friday, February 13th. Seven equities research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $207.07.

RH Stock Performance

NYSE RH opened at $111.43 on Wednesday. The firm has a market capitalization of $2.09 billion, a P/E ratio of 20.11, a PEG ratio of 0.55 and a beta of 2.14. The stock has a 50-day simple moving average of $174.82 and a two-hundred day simple moving average of $180.43. The company has a debt-to-equity ratio of 944.39, a quick ratio of 0.26 and a current ratio of 1.19. RH has a fifty-two week low of $108.00 and a fifty-two week high of $257.00.

RH (NYSE:RH) last issued its earnings results on Tuesday, March 31st. The company reported $1.53 EPS for the quarter, missing analysts’ consensus estimates of $2.21 by ($0.68). The company had revenue of $842.62 million during the quarter, compared to analysts’ expectations of $873.48 million. RH had a negative return on equity of 161.72% and a net margin of 3.22%.The firm’s quarterly revenue was up 3.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.58 EPS. On average, equities analysts forecast that RH will post 4.39 earnings per share for the current year.

Insider Activity

In related news, Director Mark S. Demilio sold 2,254 shares of the firm’s stock in a transaction dated Wednesday, January 14th. The shares were sold at an average price of $220.00, for a total value of $495,880.00. Following the transaction, the director directly owned 19,962 shares of the company’s stock, valued at approximately $4,391,640. This trade represents a 10.15% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Eri Chaya sold 7,000 shares of RH stock in a transaction dated Tuesday, March 24th. The stock was sold at an average price of $129.42, for a total value of $905,940.00. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 18,254 shares of company stock worth $2,789,400. Company insiders own 27.00% of the company’s stock.

Hedge Funds Weigh In On RH

A number of hedge funds have recently made changes to their positions in RH. Norges Bank acquired a new stake in shares of RH in the second quarter worth approximately $29,083,000. Dynamic Technology Lab Private Ltd increased its position in shares of RH by 481.1% during the third quarter. Dynamic Technology Lab Private Ltd now owns 10,169 shares of the company’s stock worth $2,066,000 after purchasing an additional 8,419 shares in the last quarter. Greatmark Investment Partners Inc. raised its stake in RH by 8.6% in the 3rd quarter. Greatmark Investment Partners Inc. now owns 81,015 shares of the company’s stock valued at $16,459,000 after purchasing an additional 6,412 shares during the last quarter. Westfield Capital Management Co. LP purchased a new position in RH in the 3rd quarter valued at $67,632,000. Finally, Barclays PLC lifted its holdings in RH by 93.6% in the 3rd quarter. Barclays PLC now owns 146,247 shares of the company’s stock valued at $29,712,000 after purchasing an additional 70,702 shares in the last quarter. Institutional investors and hedge funds own 90.17% of the company’s stock.

RH News Roundup

Here are the key news stories impacting RH this week:

• Positive Sentiment: Management outlined 2026 revenue growth of 4%–8% and a longer-term target of $5.4B–$5.8B by 2030, signaling a clear growth target that could support valuation if execution improves. RH outlines 2026 revenue growth
• Positive Sentiment: RH announced leadership appointments to expand its global strategy and manufacturing focus — a potential positive for long-term execution and margin improvement if these hires accelerate supply-chain or product initiatives. RH builds out global strategy
• Neutral Sentiment: TD Cowen reduced its price target (from $265 to $200) but kept a Buy rating, showing some analyst conviction remains despite weaker near-term results. TD Cowen price target update
• Neutral Sentiment: The company posted its Q4 earnings release and made the earnings-call transcript / presentation available for investors to review management commentary and detail on headwinds. RH Q4 results press release
• Negative Sentiment: Core driver of the decline: RH missed Q4 consensus (reported EPS $1.53 vs. ~ $2.21 expected) and revenue also missed estimates — a clear near-term earnings disappointment. Earnings miss and weak guidance
• Negative Sentiment: Management guided Q1 revenue to decline 2%–4% and cited tariff headwinds that compressed gross margins (management quantified tariff pressure at roughly 190 basis points), intensifying concerns about near-term margin recovery. Tariff and guidance details
• Negative Sentiment: Market reaction: multiple outlets report the stock “tumbled” or “cratered” after results — indicating selling pressure as investors reprice near-term growth and margin risk. Market reaction coverage

About RH

RH, formerly Restoration Hardware, is a design-driven luxury retailer specializing in high-end home furnishings, décor, textiles, lighting and outdoor living products. The company offers a curated collection of furniture pieces—including seating, casegoods, beds and dining items—alongside rugs, art and decorative accessories. RH’s product lines are organized into distinct collections, each reflecting a cohesive design philosophy and premium craftsmanship aimed at the residential and hospitality markets.

Founded in 1979 in Eureka, California, by Stephen Gordon, Restoration Hardware began as a small warehouse in Northern California.