Analyst Max Rakhlenko from TD Cowen maintained a Buy rating on Arhaus (ARHS – Research Report) and keeping the price target at $13.00.
Max Rakhlenko has given his Buy rating due to a combination of factors including Arhaus’s strong performance in the fourth quarter, where demand re-accelerated significantly. The company has shown impressive multi-year trends and is positioned well in the high-end furniture market with a unique and high-quality product offering. Despite some challenges with margin expectations, the overall outlook for fiscal year 2025 appears promising, particularly in the second half as demand normalizes.
Additionally, Arhaus has maintained its online market share, showing resilience against competitors like RH. The company’s strategy to enhance its value perception and its successful pilot of volume discounts further support its growth potential. While there are some uncertainties, such as the need to appoint a new CFO, the overall strategic positioning and market dynamics suggest that Arhaus is poised for continued success, justifying the Buy rating.
Rakhlenko covers the Consumer Cyclical sector, focusing on stocks such as Planet Fitness, Lowe’s, and O’Reilly Auto. According to TipRanks, Rakhlenko has an average return of 11.9% and a 60.14% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $13.00 price target.