Arhaus rises as "buy" ratings pile in after IPO quiet period ends

Arhaus

29/11/2021 13:41

** Arhaus Inc  ARHS.O  shares up ~8% at $10.99 premarket as
multiple analysts issue bullish reports after luxury furniture
retailer's IPO quiet period ends
    ** Jefferies, one of the lead bookrunners for the IPO,
initiates with "buy" and $16 PT, implying 57% upside to stock's
Fri close
    ** ARHS is a rapidly-growing retailer in $62 bln premium
home furnishings industry that gives investors exposure to
strength in spend among affluent households, long-term showroom
growth, robust unit-level economics, and path toward 18% EBITDA
margins, Jefferies says in note
    ** Telsey Advisory Group initiates with "outperform" and $14
PT
    ** ARHS faces some near-term challenges with rising freight
costs and margin pressure from investments in manufacturing and
distribution capacity, Telsey says, but believes stock's
valuation is attractive for a co with potential to grow sales
~3x over the next five years to $1.6 bln in 2025
    ** Other bullish ratings include Piper Sandler and Barclays
both at "overweight", Guggenheim at "buy"
    ** ARHS, backed by private equity firm Freeman Spogli, went
public on Nov 4 after co sold 12.9 mln shares at $13  urn:newsml:reuters.com:*:nBwFjS5ta

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))