RH Stock At Six-Year Low: Analysts Warn Of Short-Term Pressure, Weak Housing Trends

• Telsey Advisory Group lowered its price target for RH shares to $140 from $165 while maintaining a ‘Market Perform’ rating.
• Wells Fargo said that although upcoming new product offerings may support results, investor sentiment continues to stay cautious.
• RH projects its 2026 revenue to grow between 4% and 8%.

RH Inc. (RH) is facing a wave of cautious outlooks from major Wall Street analysts, who have collectively trimmed their price targets amid concerns over the broader housing market and softer-than-expected fourth-quarter (Q4) performance. 

The furniture retailer reported revenue of $842.6 million in Q4 and adjusted earnings per share (EPS) of $1.53, both missing the analysts’ consensus estimates of an EPS of $2.5 on revenue of $873.25 million, according to Fiscal.ai data. 

Telsey And TD Cowen Lower Price Targets

Telsey Advisory Group lowered its price target for RH shares to $140 from $165 while maintaining a ‘Market Perform’ rating, according to TheFly. The firm acknowledged the company’s product revamp but expressed concern that sluggish housing trends could temper consumer spending.

TD Cowen revised its price target downward to $170 from $200 and kept a ‘Buy’ rating, citing a weaker Q4 performance and guidance that fell short of expectations. 

Cowen anticipates potential growth in the second half of 2026 as new initiatives in the Estates collection and European expansion gain traction, though the investment pace is expected to be slow.

RH stock traded over 22% lower on Wednesday mid-morning, hitting April 2020 lows. However, on Stocktwits, retail sentiment around the stock jumped to ‘extremely bullish’ from ‘bearish’ territory the previous day. Message volume shifted to ‘extremely high’ from ‘low’ levels in 24 hours.

Wells Fargo Highlights Interest Rate Concern 

Wells Fargo also slashed its price target to $180 from $225 and retained an Overweight rating. The firm observed that key performance indicators missed investor expectations, yet acknowledged improvements in leverage, inventory, and free cash flow. 

Analysts at Wells Fargo noted that while future growth and product innovation could lift performance, market sentiment remains cautious due to geopolitical tensions and interest rate concerns.

RH projects its 2026 revenue to grow between 4% and 8%, while expecting an adjusted earnings before interest, taxes, and amortization (EBITDA) margin in the range of 14% to 16%. The company also anticipates generating adjusted free cash flow of approximately $300 million to $400 million during the year.

RH stock has declined by over 39% year-to-date. 

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