: RH stock slumps after downward guidance revision, analyst price target cuts #FinanceUSA #StockMarketNEWS RH shares dropped 11.7% in early Thursday trading following an after-hours downward guidance

@stockMarketNEWS Fri 01 Jul, 2022

RH stock slumps after downward guidance revision, analyst price target cuts #FinanceUSA #StockMarketNEWS
RH shares dropped 11.7% in early Thursday trading following an after-hours downward guidance revision and subsequent analyst price target cuts. The stock has declined 21% for the week so far. While some analysts held on to their bullish outlook for the company, multiple groups slashed their price target. "We have previously noted price increases well in excess of the industry and are concerned that the company could be 'firing' its core aspirational luxury customer too aggressively before truly appealing to a true luxury customer," wrote Wedbush in a note. "Nonetheless, RH last indicated willingness to sustain substantial market share losses for over 18 months in order to protect its brand for the long-term." Wedbush rates RH outperform with a 4 price target, down from 5. RH's price target was also cut at Cowen (down to 0 from 0, stock rated outperform) and JPMorgan (lowered to 0 from 0, stock rated overweight). "In what could prove to be a prudent move, RH proactively lowered its FY guidance citing a slowdown in demand over the past few weeks. Still, the key is whether it has lowered its outlook enough or will there be a need to cut guidance again later in the year," said UBS, which rates the stock neutral and reduced its price target to 0 from 0. RH also pulled down other home stocks, with Williams-Sonoma Inc. falling 6.7% on Thursday, and The Container Store Group Inc. down 6.7%. RH shares have plunged 61% for the year to date.

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