Arhaus downgraded to Hold from Buy at Jefferies

Jefferies downgraded Arhaus to Hold from Buy with a price target of $16, down from $22. The company’s trends post-April “look soft,” with slowing site traffic growth, falling e-commerce conversion and a growing percent of browsing activity tied to sale items, the analyst tells investors in a research note. The firm says that as investors increasingly embrace a view of “persistently-stubborn” housing turnover into the first half of 2025, stocks with “rich” margin expansion will outperform. It now has less conviction that Arhaus “will check that box.”