Piper Sandler Reiterates Neutral Rating for Arhaus (NASDAQ:ARHS)

Key Points

• Piper Sandler raised Arhaus's price target from $9.00 to $11.00, indicating a potential downside of 8.26% from the previous close while maintaining a "neutral" rating on the stock.
• Recent assessments by multiple brokerages show a range of price targets for Arhaus, with Guggenheim lowering theirs from $14.00 to $12.00 and Morgan Stanley chopping theirs from $11.00 to $10.00.
• Arhaus reported a 25% increase in quarterly earnings per share to $0.25, exceeding expectations, alongside a revenue of $358.44 million, which was significantly above analyst estimates.

Arhaus (NASDAQ:ARHS - Get Free Report)'s stock had its "neutral" rating reaffirmed by stock analysts at Piper Sandler in a research report issued on Friday, MarketBeat reports. They presently have a $11.00 target price on the stock, up from their previous target price of $9.00. Piper Sandler's price target indicates a potential downside of 9.13% from the stock's previous close.

Several other research analysts have also recently weighed in on ARHS. Morgan Stanley dropped their price target on shares of Arhaus from $11.00 to $10.00 and set an "equal weight" rating on the stock in a research note on Friday, May 9th. Loop Capital decreased their price objective on shares of Arhaus from $12.00 to $8.00 and set a "hold" rating on the stock in a research report on Friday, May 9th. Stifel Nicolaus decreased their price objective on shares of Arhaus from $11.50 to $10.00 and set a "buy" rating on the stock in a research report on Monday, May 12th. Raymond James Financial assumed coverage on shares of Arhaus in a report on Monday, June 9th. They issued a "market perform" rating on the stock. Finally, Guggenheim reduced their price target on shares of Arhaus from $14.00 to $12.00 and set a "buy" rating on the stock in a report on Friday, May 9th. Twelve research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat, Arhaus has an average rating of "Hold" and a consensus target price of $10.50.

Arhaus Stock Up 8.5%

Shares of NASDAQ:ARHS traded up $0.95 during trading on Friday, reaching $12.11. 1,578,107 shares of the stock traded hands, compared to its average volume of 1,955,593. The stock has a 50-day moving average of $9.09 and a two-hundred day moving average of $9.31. Arhaus has a 52-week low of $6.61 and a 52-week high of $13.97. The company has a debt-to-equity ratio of 0.14, a quick ratio of 0.61 and a current ratio of 1.33. The stock has a market cap of $1.71 billion, a P/E ratio of 24.12, a price-to-earnings-growth ratio of 6.76 and a beta of 2.56.

Arhaus (NASDAQ:ARHS - Get Free Report) last issued its earnings results on Thursday, August 7th. The company reported $0.25 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.15 by $0.10. Arhaus had a net margin of 5.33% and a return on equity of 20.08%. The company had revenue of $358.44 million for the quarter, compared to analysts' expectations of $333.39 million. During the same quarter last year, the company posted $0.16 earnings per share. The firm's quarterly revenue was up 15.6% on a year-over-year basis. As a group, sell-side analysts expect that Arhaus will post 0.46 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Arhaus

A number of institutional investors have recently modified their holdings of ARHS. GAMMA Investing LLC grew its position in Arhaus by 185.1% in the 2nd quarter. GAMMA Investing LLC now owns 3,150 shares of the company's stock valued at $27,000 after buying an additional 2,045 shares during the last quarter. BNP Paribas Financial Markets purchased a new stake in shares of Arhaus during the 4th quarter worth $58,000. KLP Kapitalforvaltning AS purchased a new stake in shares of Arhaus during the 4th quarter worth $69,000. Cetera Investment Advisers purchased a new stake in shares of Arhaus during the 4th quarter worth $99,000. Finally, Freestone Grove Partners LP purchased a new stake in shares of Arhaus during the 4th quarter worth $113,000. 27.88% of the stock is owned by institutional investors and hedge funds.

About Arhaus

Arhaus, Inc operates as a lifestyle brand and premium retailer in the home furnishings market in the United States. It provides merchandise assortments across various categories, including furniture, lighting, textiles, décor, and outdoor. The company's furniture products comprise bedroom, dining room, living room, and home office furnishings, which includes sofas, dining tables and chairs, accent chairs, console and coffee tables, beds, headboards, dressers, desks, bookcases, modular storage, and other items; and outdoor products, such as outdoor dining tables, chairs, chaises and other furniture, lighting, textiles, décor, umbrellas, and fire pits.