Arhaus initiated with a Buy at Craig-Hallum

Craig-Hallum analyst Jeremy Hamblin initiated coverage of Arhaus (ARHS) with a Buy rating and $15 price target. The firm views Arhaus as a share gainer in the home furnishings category that it contends is “poised to grow substantially over the next decade,” the analyst says in a note partially titled “An RH-Sized Opportunity Trading At An Ethan Allen Multiple.” Arhaus has “the most attractive growth profile within the category” and is rapidly taking share, adds the analyst, who believes the company “could garner an even higher multiple once fears around a housing sector slowdown abate.”