Restoration Hardware (RH) PT Lowered to $390 at Stifel

Stifel analyst W. Andrew Carter lowered the price target on Restoration Hardware (NYSE: RH) to $390.00 (from $450.00) while maintaining a Buy rating.

The analyst commented, “Following F4Q24 earnings/Friday evening’s release, we continue with our Buy reducing our target price to $390 based on our scenario analysis. We have modestly reduced our fundamental outlook balancing a slightly weaker revenue outlook against stronger profitability while not incorporating Liberation Day tariffs we estimate would create $362 FY24 million EBITDA headwind absent further mitigation. And we believe the 42% decline post earnings (S&P 500 -10.5%) effectively prices the worst-case scenario. But we view the initial tariff announcement as a Maximalist opening salvo with some tariffs remaining in-place, some countries retaliating, but ultimately concessions from highly dependent nations with Vietnam the most heavily incentivized to avoid the pressure and the most consequential for RH and Floor & Decor (FND; $71.50; Buy). Our updated target price overweights the fundamental case which we believe will come back into focus with growing evidence supporting the Maximalist view and enthusiasm for RH’s advantaged positioning.Prices as of Close 4/4/2025”

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