
RH (RH) Stock Forecast & Price Target
RH (RH) Analyst Ratings
Bulls say
RH has demonstrated strong financial performance, with revenues increasing by 8.4% to reach $899 million, alongside a notable operating margin expansion of 339 basis points year-over-year to 15.1%. Demand for the company's offerings surged 13.7% in the second quarter of 2025, reflecting an acceleration from previous growth rates, with significant contributions from the expanding brand presence in markets like RH England. Additionally, RH's proactive approach to sourcing—reducing dependency on China to just 2% by the fourth quarter of 2025—coupled with improvements in gross margins, which rose by 79 basis points to 46.0%, positions the company favorably for continued profitability and market share growth.
Bears say
RH's financial outlook appears negative due to several key factors, including a projected decrease in capital expenditures from $275MM-$325MM in 2025 to $150MM-$200MM beyond that, indicating potential reductions in growth investments. The company also expects a drop in earnings per share (EPS) from $14.25 to $12.35 for 2026, alongside an anticipated EBITDA decline from $728 million to $686 million, driven largely by weaker revenue performance and increased tariff-related costs. Additionally, RH has revised its free cash flow expectations downward for 2025, estimating $250MM-$300MM compared to previous guidance of $250MM-$350MM, reflecting concerns about sustained revenue and operating margin pressure.
This aggregate rating is based on analysts' research of RH and is not a guaranteed prediction by Public.com or investment advice.
RH (RH) Analyst Forecast & Price Prediction
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