ARHS - Arhaus stock edges lower as Guggenheim cuts PT to $12

Arhaus (ARHS -3.2%) stock edged lower after Guggenheim Securities cut its price target to $12 from $15, citing recent moderation in growth retail multiples, and reiterated its Buy rating. The new PT implies 33.6% upside to ARHS' last close. Analyst Steven Forbes believes ARHS shares are set up well to outperform over the next 12 months, given that operating momentum and sentiment is expected to improve into 2022. "In addition, we see room for modest multiple expansion as ARHS capitalizes on its growth opportunity, gains share, and leverages expenses," he said. Forbes noted that ARHS entered 2022 with $225M-255M of unfulfilled demand (equivalent to 28-32% net sales growth) and the management's initial 2022 outlook implies a positive mid-single digit demand comp. "Although the implied EBIT margin guidance is for 230-280 bps of erosion, this is entirely due to the expectation for freight costs to remain elevated throughout 2022," he said. On average, Wall Street

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Arhaus stock edges lower as Guggenheim cuts PT to $12