
RH (RH) Stock Forecast & Price Target
RH (RH) Analyst Ratings
Bulls say
RH's stock shows a positive outlook driven by solid demand and financial performance, as evidenced by a 13.7% rise in total demand in Q2 2025, a substantial increase from 7.0% in the previous quarter. Revenues increased by 8.4% to $899 million, with an operating margin expected to expand by 170-270 basis points year-over-year, projecting an operating margin of 13.0%-14.0%. Additionally, RH is successfully shifting its sourcing strategy away from China, with plans to reduce dependency to only 2% by Q4 2025, coupled with a gross margin increase of 79 basis points to 46.0%, enhancing overall profitability.
Bears say
The financial outlook for RH highlights several fundamental concerns that could adversely affect its stock performance, including declining capital expenditures projected to fall from $275MM-$325MM in 2025 to $150MM-$200MM by 2027, signaling potential constraints on growth and investment. Additionally, revised earnings per share (EPS) estimates for 2026 have decreased to $12.35 from a previous forecast of $14.25, driven primarily by stagnant sales growth and pressures on operating margins, largely attributed to tariff headwinds. Furthermore, the anticipated free cash flow for 2025 has been adjusted downward to $250MM-$300MM, reflecting a cautious revenue and operating margin outlook that contrasts sharply with earlier expectations.
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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