Why This RH Analyst Is Slashing Price Target By Almost 50%

Group 1 - RH's sales are gaining momentum, with margins showing positive inflection, and easy comparisons suggesting expansion through the first half of 2025 [1] - Fourth-quarter sales reported at $812 million and earnings at $1.58 per share, missing consensus projections of $830 million and $1.91 per share [2] - Management guided to 2025 sales growth of 10%-13%, which is below the consensus estimate of 13.4% [2] Group 2 - Analyst Christopher Horvers reiterated an Overweight rating but reduced the price target from $510 to $250 [1] - Adjusted earnings estimates for 2025 and 2026 were cut from $13.16 to $11.28 per share and from $17.58 to $14.46 per share, respectively [2] - Uncertainty related to tariffs has negatively impacted the stock, which is currently trading at the low end of the valuation range [3]