RH Shares Surge 4.15% Amid Bullish Outlook

RH shares surge 4.15% to $196.14, up from $188.32 on July 17. The stock has a 52-week high of $457.26 and a 52-week low of $123.03. Analysts forecast an average target price of $258.70, implying a 31.89% upside. The estimated GF Value for RH is $367.51, suggesting a 87.37% upside.

Restoration Hardware Holdings Inc. (RH) stock surged 4.15% on July 17, 2025, reaching $196.14, up from $188.32 the previous day. This significant increase comes despite a recent downgrade from Goldman Sachs, which downgraded RH from 'Neutral' to 'Sell' on July 9, 2025, setting a price target of $179 [1]. The analyst cited housing market weakness and tariff risks as the primary reasons for the downgrade.

Despite the downgrade, RH reported a 12% increase in revenue with an operating margin of 7% for the quarter ending June 30, 2025. The company also reported $34 million in free cash flow. Strong international demand, particularly in Europe, contributed to the positive results, with RH England Gallery demand and online sales up by 47% and 44%, respectively [1].

The stock's price performance has been robust, with analysts forecasting an average target price of $258.70, implying a 31.89% upside. The estimated GF Value for RH is $367.51, suggesting an 87.37% upside [3]. RH shares have reached a 52-week high of $457.26 and a 52-week low of $123.03.

Technical analysis indicates that RH is expected to rise 5.44% during the next 3 months, with a 90% probability of holding a price between $182.97 and $247.72 at the end of this period [2]. However, the stock faces potential resistance at $200.38 and $189.50, and a pivot top point on July 10, 2025, has issued a sell signal, causing the stock to fall by -11.77% since then.

RH is actively addressing the challenges posed by the new tariff regime and the housing market slowdown. The company is shifting its sourcing away from China and focusing on international markets, particularly Europe. RH expects to open galleries in Paris, London, and Milan in the coming years, aiming to reduce revenue and profitability risks [3].

Despite the current market uncertainties, RH's earnings estimates for fiscal 2025 and 2026 have trended downward but reflect year-over-year growth of 99.6% and 35.8%, respectively. The stock carries a Zacks Rank #3 (Hold), indicating a neutral outlook [3].

References:
[1] https://finance.yahoo.com/news/goldman-sachs-downgrades-rh-rh-121501400.html
[2] https://stockinvest.us/stock/RH
[3] https://www.nasdaq.com/articles/it-too-optimistic-rh-maintain-margin-outlook-despite-tariffs