Restoration Hardware (RH) PT Lowered to $200 at TD Cowen

TD Cowen analyst Max Rakhlenko lowered the price target on Restoration Hardware (NYSE: RH) to $200.00 (from $265.00) while maintaining a Buy rating.

The analyst commented: "We raise RH one slot to #4 on our conviction list following another significant sell off with shares down (27%) YTD and (43%) from a recent N-T peak. That said, we lower our price target to $200 on 14x our FY27E EPS of $14.05 as we think valuation may be more pressured in the near-term. Shares are $15 below and only 3x turns above the post Liberation Day reaction last year when the environment in our view was significantly more unknown and concerning vs. today's backdrop (along with a cleaner balance sheet). At current levels, any potentially small shortfall to 4Q estimates (revenue and EBIT margin may miss the low-end of guide) or even a modest miss on the FY26 guide is embedded in valuation. We think RH has potentially the most asymmetric risk-reward in our coverage but acknowledge it may be challenging for shares to work in the very near-term in the current tape."

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