Morgan Stanley cuts target for RH stock from USD 240.00 to USD 210.00

Published on 10/07/2026 at 01:53 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

RH reported USD 922.2 million in second-quarter revenue, up 2.60 percent year over year. RH stock's prior close was EUR 103.00 on October 5, 2026.

RH, US74967X1037, Illustration mit AI erstellt.

RH (ISIN US74967X1037) saw Morgan Stanley cut its price objective from USD 240.00 to USD 210.00 in a September 11, 2026 research note, according to MarketBeat. The downgrade in target leaves the luxury home-furnishings retailer balancing ambitious expansion with substantial execution costs.

Analysts lower the valuation bar

Morgan Stanley retained an overweight rating while lowering its target by USD 30.00, a 12.50 percent cut from USD 240.00. The same September 11 research round also included target reductions from Wells Fargo, Bank of America and TD Cowen, according to MarketBeat.

MarketBeat reported a two-hundred-day moving average of USD 146.70 and an average analyst target of USD 164.86 on October 6, 2026. Those levels frame the debate around RH stock: analysts still see a large gap between valuation benchmarks and the latest primary-market quotation.

Revenue grows while expansion costs weigh

RH generated USD 922.2 million of GAAP net revenue in the second quarter of fiscal 2026, up 2.60 percent from the prior-year quarter, according to the company's RH filing dated September 10, 2026. GAAP net income reached USD 60.2 million, while adjusted EBITDA was USD 178.5 million and included a USD 55.1 million tariff benefit.

The tariff benefit is important for interpreting the margin. RH reported a normalized adjusted EBITDA margin of 13.40 percent in the quarter, while international expansion and new-gallery costs are expected to pressure third-quarter adjusted EBITDA margin to 12.50 percent to 13.50 percent.

Full-year growth is back-loaded

RH's updated fiscal 2026 outlook calls for revenue growth of 5.50 percent to 7.00 percent and an adjusted EBITDA margin of 15.00 percent to 16.20 percent, according to the September 10 shareholder letter. The fourth-quarter revenue growth outlook of 16.10 percent to 21.20 percent places much of the year's acceleration later in the fiscal calendar.

Management also expects fiscal 2026 free cash flow, asset sales and distributions from equity-method investments of USD 300.0 million to USD 400.0 million. The company expects international expansion to reduce adjusted EBITDA margin by 340 basis points in fiscal 2026, making execution and cash conversion central to the valuation discussion.

Prior close anchors the euro view

The prior close at Lang & Schwarz was EUR 103.00 on October 5, 2026. On the NYSE, RH was last at USD 117.17 on October 6, 2026 at 3:59 p.m. ET, against a 52-week range of USD 106.30 to USD 239.40 and a market capitalization of USD 2.2 billion.

The further course of trading is shown by the continuously updated real-time quote of RH stock.