
RH (RH) Stock Forecast & Price Target
RH (RH) Analyst Ratings
Bulls say
RH has demonstrated strong sales growth, with a revenue increase of 8.9% to $884 million, which not only surpassed expectations but also aligned with industry consensus and management guidance. The company is witnessing positive momentum in key areas, such as its Paris store, which reported a remarkable 62% demand increase in recent weeks, contributing to the overall optimism surrounding RH's market position. Furthermore, a slight expansion in gross margin by 79 basis points amidst rising costs highlights RH's effective management strategies, reinforcing confidence in its potential for continued outperformance within the luxury furniture sector.
Bears say
The financial outlook for RH appears negative due to a concerning trend of declining profitability, as indicated by a contraction of the operating margin to 11.6%, significantly below peers. Additionally, RH has revised its guidance for 2025, reducing both revenue and profit estimates, which reflects a weaker revenue performance and an anticipated EBITDA decrease from $728 million to $686 million. Furthermore, while expected free cash flow remains positive in 2025, the overall financial indicators suggest challenges ahead, particularly in light of a lower EPS forecast for 2026, down from previous estimates.
This aggregate rating is based on analysts' research of RH and is not a guaranteed prediction by Public.com or investment advice.
RH (RH) Analyst Forecast & Price Prediction
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