ARHS - Arhaus rallies again as investor eye the home furnishings outperformance
Arhaus ( NASDAQ: ARHS ) made it two straight days of gains on Tuesday with a 3.26% bump higher in mid-day action. The furniture retailer saw a big rally on Monday after raising guidance and issuing a confident update at the ICR Conference.
Bank of America thinks the continued material outperformance by Arhaus ( ARHS ) amid a difficult promotional calendar for furnishings is indicative of the retailer's share gains and continued opportunities for expansion.
"We estimate ARHS’s premium furnishings market share is ~2%, leaving ample room for expansion. ARHS is targeting 165+ design galleries over the long term vs. 80 now."
BofA increased FY23 estimates on Buy-rated ARHS and raised its price objective to $16.50. "With ample idiosyncratic growth drivers (omnichannel expansion, expanded distribution capabilities, marketing and product launches), we continue to see a case for outperformance which should drive multiple expansion," tipped BofA.
Shares of ARHS are up more than 28% since the Seeking Alpha Quant Rating on the stock flashed Strong Buy.
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Arhaus rallies again as investor eye the home furnishings outperformance