Wedbush lowered the firm’s price target on RH to $250 from $320 and keeps a Neutral rating on the shares. The company reported Q1 results that missed demand guidance and came in below consensus on earnings while the outlook for Q2 revenue and operating margin was disappointing, the analyst tells investors in a research note. The firm says RH left fiscal 2024 guidance unchanged, implying a “very sharp” double-digit sales and demand ramp in the second half despite demand choppiness in Q1, a more negative-leaning macro outlook, and limited concrete evidence that new products are driving a significant customer response. Wedbush believes RH’s execution risk remains with limited visibility to reach guidance.
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