Wells Fargo Cuts RH Price Target to $180

Analysts lower outlook for luxury home furnishings retailer amid market headwinds

Apr. 1, 2026 at 4:22pm

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Wells Fargo & Company has lowered its price target for RH (NYSE:RH) from $225.00 to $180.00, while maintaining an 'overweight' rating on the stock. The move comes after RH reported weaker-than-expected Q4 results, with management citing tariffs and adverse weather as factors that reduced net revenue by around $40 million.

Why it matters

RH, formerly known as Restoration Hardware, is a high-end home furnishings retailer that has faced a number of challenges in recent quarters, including the impact of trade tariffs and unfavorable weather conditions. The lowered price target from Wells Fargo suggests analysts see further near-term headwinds for the company, even as it maintains a positive long-term outlook.

The details

In its research report, Wells Fargo noted that RH's Q4 results missed both earnings per share and revenue expectations. Management said tariffs and late-quarter adverse weather reduced Q4 net revenue by roughly $40 million, with about $30 million attributed to tariffs and $10 million to weather impacts. The brokerage also highlighted that RH's fiscal 2026 guidance came in below Street expectations, with the company projecting revenue growth of around 4-8% and adjusted EBITDA margin of 14-16% as it invests in expansion and incurs pre-opening costs.

  • RH reported Q4 2025 results on March 31, 2026.

The players

Wells Fargo & Company

A major American multinational financial services company that provides various banking, investment, and mortgage products and services.

RH

A design-driven luxury retailer specializing in high-end home furnishings, décor, textiles, lighting, and outdoor living products.

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What they’re saying

“Wells Fargo & Company lowered their price objective on RH from $225.00 to $180.00 and set an "overweight" rating on the stock in a research report on Wednesday.”

— Wells Fargo & Company, Analysts

What’s next

Investors will be closely watching RH's performance in the coming quarters to see if the company can overcome the recent headwinds and execute on its long-term growth plans.

The takeaway

The lowered price target from Wells Fargo reflects the near-term challenges facing RH, but the 'overweight' rating suggests analysts still see potential for the luxury home furnishings retailer over the long run. RH's ability to navigate macroeconomic pressures and invest strategically in its expansion will be key to its future success.