RH downgraded to Sell from Neutral at Goldman Sachs

Goldman Sachs analyst Kate McShane downgraded RH to Sell from Neutral with a price target of $215, down from $227. The company’s sales will likely remain pressured, given its purchases are discretionary and larger ticket, McShane tells investors in research note. She believes RH is experiencing a pull-forward of demand and highly promotional environment and notes that it faces difficult year-over-year compares. There is potential downside to RH’s current valuation, writes McShane.