Sharecast - "We view Dunelm (LON:DNLM) as a well-managed business with a strong position in the UK homewares market," it said.
"However, with cost-of-living pressures persisting, unfavourable movements in the UK housing market and only a moderate store expansion story, we think that growth will be more difficult to come by now."
As a result, RBC said it sees greater upside potential in travel - SSP, WH Smith (LON:SMWH) and Dufry - and discount retailers such as Associated British Foods (LON:ABF) and B&M European Value, "given strong topline momentum and meaningful expansion for these names".
FTSE 250 - Risers
Synthomer (LON:SYNTS) (SYNT) 77.40p 3.34%
Future (FUTR (LON:FUTR)) 713.50p 3.33%
CLS Holdings (CLI) 141.40p 3.21%
Molten Ventures (GROW) 263.60p 3.21%
UK Commercial Property Reit Limited (UKCM) 51.40p 3.01%
TUI (LON:TUIT) AG Reg Shs (DI) (TUI) 602.50p 2.99%
PureTech Health (PRTC) 225.00p 2.97%
Target (NYSE:TGT) Healthcare Reit Ltd (THRL (LON:THRL)) 74.70p 2.89%
Elementis (LON:ELM) 107.20p 2.68%
Sirius Real Estate Ltd. (SRE) 86.65p 2.54%
FTSE 250 - Fallers
Dunelm Group (DNLM) 1,064.00p -5.00%
Bank of Georgia Group (LON:BGEO) 2,830.00p -3.74%
Helios Towers (HTWS) 86.55p -3.40%
TBC Bank Group (TBCG) 2,360.00p -3.08%
Senior (SNR) 170.00p -2.86%
Liontrust Asset Management (LON:LIO) 686.50p -2.42%
Marks & Spencer Group (MKS (LON:MKS)) 191.50p -2.17%
Capita (CPI) 26.96p -1.96%
HICL Infrastructure (HICL) 132.00p -1.93%
Pennon Group (LON:PNN) 701.00p -1.68%