RH’s (RH) Underperform Rating Reaffirmed at BNP Paribas Exane

RH (NYSE:RH)‘s stock had its “underperform” rating reiterated by analysts at BNP Paribas Exane in a research report issued on Friday, Benzinga reports. They currently have a $81.00 target price on the stock, down from their prior target price of $90.00. BNP Paribas Exane’s price objective suggests a potential downside of 40.71% from the company’s current price.

Several other equities analysts have also weighed in on the company. Wells Fargo & Company cut their price target on RH from $225.00 to $175.00 and set an “overweight” rating for the company in a research note on Friday. UBS Group set a $190.00 price target on RH in a research report on Friday. TD Cowen dropped their price objective on RH from $220.00 to $190.00 and set a “buy” rating on the stock in a report on Friday. Bank of America cut their price objective on RH from $156.00 to $114.00 and set an “underperform” rating for the company in a research report on Friday. Finally, Telsey Advisory Group upped their target price on RH from $140.00 to $155.00 and gave the stock a “market perform” rating in a research note on Friday. Seven investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $165.57.

RH Stock Performance

RH stock traded up $2.60 during midday trading on Friday, hitting $136.62. 1,265,747 shares of the stock traded hands, compared to its average volume of 1,030,150. The firm has a market cap of $2.58 billion, a P/E ratio of 26.41, a PEG ratio of 3.32 and a beta of 1.85. The company has a debt-to-equity ratio of 54.96, a current ratio of 1.13 and a quick ratio of 0.32. The stock’s fifty day simple moving average is $167.02 and its 200-day simple moving average is $150.20. RH has a 1-year low of $106.30 and a 1-year high of $248.44.

RH (NYSE:RH) last released its quarterly earnings data on Thursday, September 10th. The company reported $2.70 earnings per share for the quarter, beating analysts’ consensus estimates of $0.38 by $2.32. The company had revenue of $922.15 million during the quarter, compared to analysts’ expectations of $915.09 million. RH had a net margin of 3.01% and a return on equity of 423.79%. The firm’s revenue for the quarter was up 2.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.93 earnings per share. On average, analysts expect that RH will post 4.2 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Gary Friedman sold 69,069 shares of the company’s stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $169.48, for a total transaction of $11,705,814.12. Following the completion of the transaction, the chief executive officer owned 3,282,268 shares in the company, valued at $556,278,780.64. This represents a 2.06% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Carlos Alberini purchased 11,388 shares of the firm’s stock in a transaction that occurred on Monday, June 29th. The stock was bought at an average cost of $160.90 per share, for a total transaction of $1,832,329.20. Following the completion of the purchase, the director directly owned 32,190 shares in the company, valued at $5,179,371. This represents a 54.74% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders sold a total of 132,749 shares of company stock worth $21,856,812 in the last 90 days. Insiders own 26.90% of the company’s stock.

Hedge Funds Weigh In On RH

Hedge funds and other institutional investors have recently made changes to their positions in the company. California State Teachers Retirement System raised its stake in RH by 16,138.1% in the 2nd quarter. California State Teachers Retirement System now owns 2,835,168 shares of the company’s stock valued at $467,037,000 after purchasing an additional 2,817,708 shares during the last quarter. BlackRock Inc. grew its stake in RH by 41.7% during the 2nd quarter. BlackRock Inc. now owns 1,978,271 shares of the company’s stock valued at $325,881,000 after acquiring an additional 581,710 shares in the last quarter. Alyeska Investment Group L.P. raised its holdings in RH by 4.4% in the 2nd quarter. Alyeska Investment Group L.P. now owns 1,708,997 shares of the company’s stock valued at $281,523,000 after acquiring an additional 72,674 shares during the last quarter. Senvest Management LLC raised 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 acquiring an additional 194,773 shares during the last quarter. Finally, Durable Capital Partners LP lifted its stake in RH by 125.1% in the 2nd quarter. Durable Capital Partners LP now owns 646,097 shares of the company’s stock worth $122,119,000 after purchasing an additional 359,101 shares in the last quarter. Hedge funds and other institutional investors own 90.17% of the company’s stock.

RH News Roundup

Here are the key news stories impacting RH this week:

• Positive Sentiment: RH reported second-quarter EPS of $2.70, far above the roughly $0.38–$0.42 analyst consensus. Revenue rose 2.6% year over year to approximately $922 million, slightly above some estimates. The results helped drive a premarket rally. RH Stock Rallies After Mixed Q2 Print
• Positive Sentiment: Management projected fiscal 2026 revenue of $3.6 billion to $3.7 billion, above the approximately $3.5 billion consensus. Investors are also focused on RH Estates, which management believes could substantially expand the company’s addressable market and represent half of its offering within five years. RH Projects Fiscal 2026 Revenue Growth
• Positive Sentiment: Guggenheim reaffirmed its “buy” rating with a $200 price target, while TD Cowen maintained a “buy” rating despite lowering its target to $190. Both targets imply substantial upside from recent trading levels.
• Positive Sentiment: Telsey Advisory Group raised its price target to $155 from $140, although it retained a “market perform” rating, reflecting modest confidence in the recovery outlook.
• Neutral Sentiment: Robert W. Baird lowered its target to $160 from $165 and kept a “neutral” rating. William Blair analyst Phillip Blee also maintained a “hold” stance, indicating that the earnings beat has not fully resolved concerns about the business trajectory.
• Negative Sentiment: Analysts cautioned that tariff refunds materially supported the quarter’s profitability, potentially masking persistent margin pressure and weakness in underlying or core sales. Operating profit reportedly declined year over year despite higher gross profit. RH Tariff Benefits Mask Enduring Margin Pressure
• Negative Sentiment: Bank of America cut its price target sharply to $114 from $156 and assigned an “underperform” rating, citing downside risk. RH’s third-quarter revenue guidance of $928 million to $936.8 million is also below the roughly $964 million consensus, tempering the bullish reaction to the quarterly EPS beat.

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.