Wedbush starts Arhaus with Neutral amid accelerating promotions

Wedbush last night initiated coverage of Arhaus with a Neutral rating and $11 price target With 100 stores, Arhaus has a “strong” premium furniture business and high growth potential, but macro and competition headwinds suggest limited room for upside in the near term, the analyst tells investors in a research note. The firm believes the company’s recently cut 2024 guidance is achievable at the low end, but sees modest risk to consensus forecasts based on accelerating promotional intensity during the company’s key September selling period and channel checks indicating that the company unlikely beat its plan.