William Blair has downgraded RH (RH) to Market Perform from Outperform, signaling a shift in sentiment regarding the company's outlook. This action, effective October 1, 2025, comes as RH’s current price stands at $152.16.
Such decisions reflect increased caution, possibly due to competitive pressures, market conditions, or execution risks that could impact the company's performance. The retail giant, known for its upscale home furnishings and decor, operates through its subsidiary Restoration Hardware, Inc. RH employs 5,690 full-time staff and has a market cap of $2.7 billion, with a P/E ratio of 25.24 and an EPS of 5.38.
Looking ahead, analysts will be watching closely as RH is set to report earnings on December 10, 2025, with an estimated EPS of $2.23 and revenue expectations of $910.2 million. The recent downgrade adds to a mixed landscape of analyst opinions, as other firms like Stifel and Guggenheim continue to maintain their Buy ratings.
Analyst ratings and price targets provide valuable insights, yet they are based on research and financial models that may not always align with actual performance. Investors should consider a range of factors, including company fundamentals and market trends, when making decisions. Analyst views should serve as one of many inputs rather than the sole basis for investment choices.