RH price target lowered by $40 at Telsey Advisory, here’s why

Telsey Advisory analyst Cristina Fernandez lowered the firm’s price target on RH to $325 from $365 and keeps a Market Perform rating on the shares ahead of the company’s Q3 results on December 7. The analyst is looking for signs that RH is approaching a turning point in its demand trend, saying fall 2023 was the first time the company mailed source books since 2019 and it introduced several new collections at lower prices. The book hit homes in September and October and the initial customer response should give an indication of whether demand trends will continue to follow the overall luxury housing market, the analyst tells investors in a research note.