William Blair analyst Phillip Blee has maintained their neutral stance on RH stock, giving a Hold rating today.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Phillip Blee has given his Hold rating due to a combination of factors that suggest limited near-term upside for RH’s stock. The company’s third-quarter performance was weaker than anticipated, and its guidance for the fourth quarter has been downgraded, which dampens expectations for any immediate business acceleration. Although there was a slight increase in stock value after the earnings report, this was largely driven by quantitative factors rather than improvements in business fundamentals.
Management’s emphasis on growth rates compared to peers does not fully account for RH’s challenges, such as its higher square footage growth and the shift away from accessories and seasonal products. Additionally, the company faces increased headwinds from international expansion and tariffs, which are expected to impact its financial performance. RH’s valuation is slightly below its premium furniture peers, reflecting its ambitious outlook, higher tariff exposure, and leveraged balance sheet. These factors contribute to the Hold rating, as they suggest that while there may be short-term stock volatility, the long-term outlook remains uncertain.
According to TipRanks, Blee is a 4-star analyst with an average return of 15.4% and a 47.30% success rate. Blee covers the Consumer Cyclical sector, focusing on stocks such as Driven Brands Holdings, AutoZone, and RH.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $155.00 price target.