RH upgraded to Outperform from Market Perform at Telsey Advisory

Telsey Advisory upgraded RH (RH) to Outperform from Market Perform with a price target of $500, up from $485. While applying a multiple above RH’s historical five-year average, higher valuations across the market and the accelerating demand trends at RH support it, the analyst tells investors. A more positive stance on RH is based on the company’s better-than-expected demand trends in Q3 and so far in Q4, which points to market share gains as furniture demand remains soft across the industry, the analyst added. The firm believes RH’s strong demand trend can continue in 2025 as more products are introduced, the housing market begins to recover, and new stores in key European markets open.