RH price target lowered to $240 from $275 at Morgan Stanley

Morgan Stanley analyst Simeon Gutman lowered the firm’s price target on RH (RH) to $240 from $275 and keeps an Overweight rating on the shares. Execution and supply chain disruptions present near-term challenges, but the longer-term thesis rests on the company’s ability to monetize inventory, generate positive free cash flow, and avoid external financing, says the analyst, who calls the company’s ongoing improvement in cash generation “encouraging.”