RH Stock Craters 19% after Earnings Miss Prompts a Wave of Analyst Price Cuts

Shares of high-end furniture retailer RH RH -19.29% ▼ plunged 19% on Wednesday after its latest earnings report disappointed investors, which prompted multiple analysts to lower their price targets. Indeed, Wells Fargo WFC +1.21% ▲ , led by 4.5-star-rated Zachary Fadem, cut its target from $225 to $180 while maintaining a Buy rating after noting that nearly every key metric came in below expectations. The firm also reduced its Fiscal 2026 earnings estimate to $5.75 per share due to weaker performance and heavy investments.

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Separately, Goldman Sachs GS +1.68% ▲ took a more bearish stance by lowering its price target from $144 to $101 per share and keeping a Sell rating. According to 4.5-star analyst Kate McShane, the outlook failed to meet expectations, which adds to concerns about the company’s near-term performance. As a result, sentiment around the stock has turned more negative following the report.

Meanwhile, TD Cowen also lowered its price target from $200 to $170 but kept a Buy rating. The firm adjusted its forecasts after the weaker fourth quarter and softer guidance, but still sees potential improvement later on. Specifically, it expects a recovery in the second half of the year as new growth initiatives, including Estates and expansion in Europe, begin to scale, while investment spending starts to slow down.

Is RH Stock a Good Buy?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on RH stock based on five Buys, four Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average RH price target of $168.11 per share implies 49% upside potential.

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