Stifel analyst W. Andrew Carter lowered the firm’s price target on RH (RH) to $320 from $390 and keeps a Buy rating on the shares after fiscal Q2 results came in below expectations at the low end of guidance and the company reduced FY25 guidance, offering a softer revenue outlook. However, the “fundamental/valuation mismatch” keeps the firm’s constructive approach intact as second half revenue growth is slowing, but still suggests mid-single to high-single digit underlying revenue growth, the analyst tells investors.
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Read More on RH:
- RH reports Q2 adjusted EPS $2.93, consensus $3.22
- Positive Outlook for RH Stock: Buy Rating Maintained Amid Revenue Growth and Operational Leverage
- Correct: RH raises FY25 revenue growth view to 9%-11% from 8%-10%
- Telsey downgrades RH on reduced revenue, profit outlook
- RH downgraded to Market Perform from Outperform at Telsey Advisory