Analyst Simeon Gutman of Morgan Stanley maintained a Buy rating on RH, with a price target of $300.00.
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Simeon Gutman has given his Buy rating due to a combination of factors that highlight RH’s potential for future growth. One significant reason is the company’s strong free cash flow (FCF) generation, which reached its highest level in nine quarters during Q3’25. This improvement in liquidity is crucial given RH’s high financial leverage, as it alleviates some of the concerns surrounding the stock and indicates a positive outlook for continued FCF generation in 2026.
Additionally, despite recent challenges, RH’s operating leverage remains robust. The Q4’25 revenue and EBITDA guidance suggest a notable incremental margin of approximately 47%, reflecting the company’s ability to generate meaningful operating leverage even in a recovering market. This potential for operating efficiency, combined with the anticipated delays in product launches, supports the view that RH is well-positioned to capitalize on future opportunities, justifying the Buy rating.
In another report released today, Wells Fargo also maintained a Buy rating on the stock with a $295.00 price target.
Based on the recent corporate insider activity of 23 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RH in relation to earlier this year.