Goldman Sachs Downgrades RH (RH) from ‘Neutral’ to ‘Sell’; Sets PT at $179

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Goldman Sachs Downgrades RH (RH) from ‘Neutral’ to ‘Sell’; Sets PT at $179

A customer browsing a variety of residential furniture and accessories in a retail store.

On July 9, 2025, Goldman Sachs downgraded RH (NYSE:RH) from ‘Neutral’ to ‘Sell’, setting its price target at $179. This downgrade reflects a potential downside of 11.93% from the previous close. The analyst attributed this downgrade to housing market weakness and tariff risks. New home builders lack confidence, signaling a temporary construction slowdown in a market marked by high costs and weakened demand.

Nonetheless, RH (NYSE:RH) reported a 12% increase in its revenue with an operating margin of 7%. Meanwhile, it reported $34 million in free cash flow. The strong result came on the back of a surge in international demand, with RH England Gallery demand and online sales up by 47% and 44%, respectively. Meanwhile, according to full-year guidance, the company expects revenue growth of 10%-13% with an EBITDA margin of 21%.

RH (NYSE:RH) offers luxury furniture and design across galleries, digital platforms, and international showrooms. It operates through its RH, Waterworks, and Real Estate segments.

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