Stifel Lowers Price Target on Restoration Hardware (RH) to $450

(Updated - March 31, 2025 8:07 AM EDT)

Stifel analyst W. Andrew Carter reiterated a Buy rating and lowered the price target to $450.00 from the prior $500 on Restoration Hardware (NYSE: RH).

The analyst commented, “Ahead of RH F4Q24 earnings scheduled for 4/2/2025 AMC, we reiterate our Buy rating but modestly reducing our outlook/target price. Our updated estimates reflect incremental caution given broad market volatility/weakness. But we believe the recent volatility will beget disruption versus material deterioration from the 2H24 demand inflection with other key premium indicators remaining healthy and MLKN F3Q25 positive results/commentary an underappreciated positive amid the uncertainty. We estimate 14% CAGR FY24E-FY27E revenue growth now including a more meaningful demand deceleration but remaining above consensus. We remain confident in our profit/cash flow outlook as RH cycles a heavy spending cycle which likely included necessary investments to exit China, insulating RH from incremental tariffs. With RH shares down 48% from the post F3Q24 late January peak (S&P 500 -8%), we believe the current discount to furnishings peers overweights uncertainty while dramatically undervaluing the advantaged long-term growth profile with RH shares at 7.5x EV/FY26E EBITDA.”

For an analyst ratings summary and ratings history on Restoration Hardware click here. For more ratings news on Restoration Hardware click here.

Shares of Restoration Hardware closed at $236.28 yesterday.

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