Restoration Hardware (RH) PT Slashed to $220 at TD Cowen After a 'Tough Print'

TD Cowen analyst Max Rakhlenko lowered the price target on Restoration Hardware (NYSE: RH) to $220.00 (from $510.00) while maintaining a Buy rating.

The analyst commented: "Tough Print in a Tough Tape Leaves a Lot to Unpack for Now; A lot to unpack between softer 4Q results vs. expectations, a more conservative FY25 top-line guide & questions around FCF/liquidity in the context of significantly rising tariffs were a recipe for a tough stock reaction. Revs remain industry leading but are slowing with concerns around future growth given declining wealth effect, esp. with elevated inventory. Maintain Buy rating, but lower PT.

Bears Now Dominate The Narrative: Given the noise around the print along with demand concerns given declining wealth effect, and questions around liquidity, we think shares will remain range-bound in the NT. We lower our PT to $220 (AH price ~$184) on 14x our FY26E EPS of $16.22 & lower the stock in our conviction list outside top three."

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