11:58 AM EDT, 03/22/2024 (MT Newswires) -- RH (RH) is facing downside risk to its Q4 and 2024 financials amid price declines, continued market share losses, winter weather headwinds, and the execution risk on product and international expansions, Wedbush Securities said in a Friday note.

"While investor expectations are low and RH shares have underperformed YTD, we do not see the 4Q print as a positive catalyst," the investor firm said. Wedbush said it sees "modest downside risk" to its Q4 sales forecast for the company, noting lower prices and clearance pressure during the period as RH continues to "right-size" inventory.

Wedbush also said the company could issue a "disappointing" outlook for Q1 and full-year 2024. The investment firm attributed this assumption to shipping and production delays, limited insight into new product reception, and an uncertain demand environment.

RH is set to release its Q4 results on March 27.

Wedbush Securities has a neutral rating on RH with a price target of $275.

Shares of RH were down more than 2% in recent Friday trading.

Price: 303.63, Change: -7.74, Percent Change: -2.49