Morgan Stanley Issues Pessimistic Forecast for RH (NYSE:RH) Stock Price

RH (NYSE:RH) had its price target dropped by equities research analysts at Morgan Stanley from $275.00 to $240.00 in a note issued to investors on Wednesday,Benzinga reports. The firm currently has an “overweight” rating on the stock. Morgan Stanley’s price objective suggests a potential upside of 111.47% from the stock’s previous close.

Other equities analysts have also recently issued research reports about the company. The Goldman Sachs Group reduced their price target on RH from $195.00 to $144.00 and set a “sell” rating for the company in a report on Monday, December 15th. Robert W. Baird dropped their price objective on RH from $235.00 to $180.00 and set a “neutral” rating on the stock in a report on Friday, December 12th. JPMorgan Chase & Co. cut their price objective on RH from $275.00 to $225.00 and set an “overweight” rating for the company in a research report on Friday, December 19th. TD Cowen reduced their target price on RH from $265.00 to $200.00 and set a “buy” rating for the company in a research note on Monday. Finally, Wells Fargo & Company decreased their target price on RH from $250.00 to $225.00 and set an “overweight” rating on the stock in a research report on Friday, March 13th. Seven 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 data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $180.81.

RH Stock Up 0.6%

RH stock opened at $113.49 on Wednesday. RH has a one year low of $106.30 and a one year high of $257.00. The company has a debt-to-equity ratio of 51.28, a quick ratio of 0.26 and a current ratio of 1.19. The firm’s fifty day moving average is $170.14 and its 200 day moving average is $179.49. The firm has a market cap of $2.13 billion, a PE ratio of 17.99, a P/E/G ratio of 0.47 and a beta of 2.10.

RH (NYSE:RH) last issued its quarterly earnings data 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 negative return on equity of 567.82% and a net margin of 3.63%.The firm had revenue of $842.62 million during the quarter, compared to analyst estimates of $873.48 million. During the same quarter last year, the company posted $1.58 EPS. The company’s revenue was up 3.7% on a year-over-year basis. On average, research analysts forecast that RH will post 4.39 EPS for the current year.

Insider Transactions at RH

In other RH news, Director Mark S. Demilio sold 2,254 shares of the stock in a transaction that occurred on Wednesday, January 14th. The stock was sold at an average price of $220.00, for a total transaction of $495,880.00. Following the completion of 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Eri Chaya sold 11,000 shares of the firm’s stock in a transaction that occurred on Tuesday, March 31st. The shares were sold at an average price of $137.92, for a total value of $1,517,120.00. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 29,254 shares of company stock worth $4,306,520 over the last ninety days. 27.00% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in RH. Senvest Management LLC lifted its holdings in RH by 30.1% in the 4th quarter. Senvest Management LLC now owns 842,577 shares of the company’s stock valued at $150,948,000 after purchasing an additional 194,773 shares in the last quarter. Durable Capital Partners LP grew its holdings in shares of RH by 125.1% during the second quarter. Durable Capital Partners LP now owns 646,097 shares of the company’s stock worth $122,119,000 after buying an additional 359,101 shares in the last quarter. Alliancebernstein L.P. grew its holdings in shares of RH by 66.1% during the third quarter. Alliancebernstein L.P. now owns 573,666 shares of the company’s stock worth $116,546,000 after buying an additional 228,229 shares in the last quarter. Two Sigma Investments LP raised its position in shares of RH by 40.9% in the third quarter. Two Sigma Investments LP now owns 359,093 shares of the company’s stock valued at $72,953,000 after buying an additional 104,154 shares during the last quarter. Finally, Morgan Stanley raised its position in shares of RH by 0.8% in the fourth quarter. Morgan Stanley now owns 353,996 shares of the company’s stock valued at $63,419,000 after buying an additional 2,658 shares during the last quarter. 90.17% of the stock is owned by institutional investors and hedge funds.

Key RH News

Here are the key news stories impacting RH this week:

• Positive Sentiment: Some large brokers still see meaningful upside after the pullback — Guggenheim and other firms kept bullish/overweight views (albeit with lower targets), which supports short-term buying interest. Guggenheim Lowers Price Target on RH
• Positive Sentiment: Several value/“buy-the-dip” commentaries argue RH’s sell-off creates a long-term entry opportunity given brand strength and long-term revenue goals — this can attract opportunistic investors. Not April Fool’s, RH Is Too Cheap To Ignore
• Positive Sentiment: Broader market strength and risk-off de-escalation headlines have helped short-term sentiment, providing a lift after the prior day’s heavy selling. Nasdaq Gains Over 1% On War De-Escalation Hopes
• Neutral Sentiment: Citigroup lowered its price target to $150 and set a neutral rating — this trims upside expectations but isn’t a sell call, so it can stabilize trading rather than force further liquidation. Citigroup Lowers RH Price Target
• Neutral Sentiment: RH reiterated its longer-term growth targets and emphasized investment in global expansion and new gallery openings; that strategy explains elevated near-term spending and pre-opening costs (uncertain timing of payback). RH Press Release / Earnings Materials
• Negative Sentiment: Q4 double miss: RH reported adjusted EPS $1.53 vs. ~ $2.2 expected and revenue $842.6M vs. ~$873.5M — management cited ~$30M tariff/resourcing impact and ~$10M weather headwind. That miss sparked analyst cuts and the sharp prior-day decline. RH stock tanks as fourth quarter results miss
• Negative Sentiment: FY2026 outlook is cautious: RH guided revenue growth ~4%–8% and adjusted EBITDA margin ~14%–16%, signaling margin compression as the company funds expansion and pre-opening costs — a clear near-term headwind to profitability. RH stock tumbles on disappointing Q4 and guidance
• Negative Sentiment: Insider selling and shareholder legal activity add downside risk — a recent disclosure shows an insider sale (Eri Chaya) and a law firm (Johnson Fistel) has announced an investigation into potential claims. SEC Form 4 — Eri Chaya Johnson Fistel Announces Investigation

RH Company Profile

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.