Arhaus price target lowered to $11 from $14 at Baird

Baird analyst Peter Benedict lowered the firm’s price target on Arhaus (ARHS) to $11 from $14 and keeps an Outperform rating on the shares after third quarter results that “missed expectations”. The firm said revised guidance seems biased higher given the recent improvement in demand comps. Big picture, meaningful unit growth and platform productivity opportunities suggest favorable longer-term risk/reward for patient investors; however, near-term enthusiasm remains tempered as Street incremental margin expectations for FY25 look too ambitious, Baird told investors in a research note.