08:48 AM EDT, 09/06/2024 (MT Newswires) -- RH's (RH) demand growth for 2024 is expected to be in line with its guidance of 9% to 10% year over year growth; however, it likely overestimated its H2 sales guidance, Wedbush analysts said in a note Friday.

The analysts said they believe that RH's guidance for a "very sharp double-digit" rise in sales during H2 "is less achievable than it was when last reiterated back in June."

Wedbush said that although RH previously said it believed the current environment had stabilized, "we believe industry demand decelerated through the summer based on competitor read throughs."

The firm has a neutral rating and $250 price target on the stock.

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