Arhaus price target lowered to $8 from $11 at Piper Sandler

Piper Sandler lowered the firm’s price target on Arhaus (ARHS) to $8 from $11 and keeps a Neutral rating on the shares following the Q1 print and a softer-than-anticipated Q2 outlook. While Arhaus beat on both topline revenue and adjusted EBITDA – driven by SG&A leverage – gross margin contracted year-over-year, missing expectations due to elevated freight headwinds. Management cited these pressures as an ongoing risk to margins, and lowered its full year gross margin expectations down to flattish year-over-year.