RH (NYSE:RH) Given New $240.00 Price Target at Morgan Stanley

RH (NYSE:RH) had its target price reduced by Morgan Stanley from $275.00 to $240.00 in a research report released on Wednesday morning,Benzinga reports. They currently have an overweight rating on the stock.

Several other research firms have also commented on RH. Weiss Ratings reiterated a “sell (d+)” rating on shares of RH in a research note on Monday, March 23rd. JPMorgan Chase & Co. reduced their target price on RH from $275.00 to $225.00 and set an “overweight” rating for the company in a report on Friday, December 19th. Wells Fargo & Company decreased their price target on RH from $250.00 to $225.00 and set an “overweight” rating for the company in a research report on Friday, March 13th. Zelman & Associates reiterated an “outperform” rating on shares of RH in a report on Thursday, January 29th. Finally, Telsey Advisory Group cut their price objective on RH from $185.00 to $165.00 and set a “market perform” rating on the stock in a research report on Wednesday, March 25th. Seven equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, RH has an average rating of “Hold” and an average price target of $191.06.

RH Stock Performance

NYSE RH opened at $112.77 on Wednesday. The company has a fifty day moving average price of $172.49 and a 200-day moving average price of $179.95. The firm has a market cap of $2.12 billion, a price-to-earnings ratio of 17.87, a PEG ratio of 0.58 and a beta of 2.14. The company has a debt-to-equity ratio of 944.39, a current ratio of 1.19 and a quick ratio of 0.26. RH has a 1 year low of $106.30 and a 1 year high of $257.00.

RH (NYSE:RH) last released its quarterly earnings results on Tuesday, March 31st. The company reported $1.53 earnings per share for the quarter, missing analysts’ consensus estimates of $2.21 by ($0.68). RH had a net margin of 3.63% and a negative return on equity of 251.87%. The firm had revenue of $842.62 million for the quarter, compared to the consensus estimate of $873.48 million. During the same period in the previous year, the business earned $1.58 earnings per share. The firm’s revenue for the quarter was up 3.7% on a year-over-year basis. As a group, equities research analysts predict that RH will post 4.39 EPS for the current fiscal year.

Insider Transactions at RH

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

Institutional Trading of RH

Several hedge funds and other institutional investors have recently modified their holdings of the business. Norges Bank bought a new position in shares of RH in the second quarter worth $29,083,000. Dynamic Technology Lab Private Ltd raised its stake in shares of RH by 481.1% during the 3rd quarter. Dynamic Technology Lab Private Ltd now owns 10,169 shares of the company’s stock valued at $2,066,000 after purchasing an additional 8,419 shares during the period. Greatmark Investment Partners Inc. raised its stake in shares of RH by 8.6% during 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 period. Westfield Capital Management Co. LP purchased a new stake in RH during the 3rd quarter worth about $67,632,000. Finally, Barclays PLC boosted its stake in RH by 93.6% in the 3rd quarter. Barclays PLC now owns 146,247 shares of the company’s stock worth $29,712,000 after purchasing an additional 70,702 shares during the period. Institutional investors own 90.17% of the company’s stock.

Key RH News

Here are the key news stories impacting RH this week:

• Positive Sentiment: Some sell-side supporters remain constructive on RH’s long-term opportunity — several firms kept buy/overweight ratings even after lowering targets (Guggenheim kept a Buy while cutting its target to $200; Morgan Stanley remains overweight with a $240 target). Guggenheim Lowers Price Target
• Positive Sentiment: Management reiterated multi-year growth ambitions (targeting roughly $5.4B–$5.8B revenue by 2030), signaling a strategic plan for scale that some investors view as a reason to buy the dip. Long-Term Revenue Target
• Neutral Sentiment: Company posted full Q4 results and held an earnings call; investors can review the release and transcript for management’s color on sourcing, store openings and margin drivers. RH Q4 Press Release
• Negative Sentiment: Q4 adjusted EPS of $1.53 missed consensus (~$2.21) and revenue of $842.6M missed estimates, triggering the initial selloff. Q4 Results Miss
• Negative Sentiment: Guidance and margin pressure: RH signaled FY26 revenue growth of ~4%–8% and adjusted EBITDA margin of ~14%–16%, and flagged a Q1 revenue decline (~2%–4%) as it funds expansion — a softer near-term outlook that disappointed the street. Guidance Reaction
• Negative Sentiment: Tariffs and weather hit margins — management said sourcing/tariff-related disruptions reduced Q4 revenue by roughly $30M and adverse weather another ~$10M; gross margin contracted ~180–190 bps. Tariff & Weather Impact
• Negative Sentiment: Analysts rapidly cut targets and trimmed forecasts after the print, amplifying selling pressure (multiple notes and target downgrades reported across outlets). Analyst Cuts
• Negative Sentiment: Heightened legal and balance-sheet risk: a shareholder law firm announced an inquiry into potential claims, and RH’s reported leverage and negative return-on-equity figures increase financial risk perception. Shareholder Inquiry

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.