Baird downgraded Target and Arhaus, upgrades Williams-Sonoma

Baird analyst Peter Benedict earlier today downgraded both Target (TGT) and Arhaus (ARHS) to Neutral from Outperform while upgrading shares of Williams-Sonoma (WSM). The firm recommends reducing exposure to retailers with more relative risk to discretionary demand. Target sells essentials, but its discretionary categories like home and apparel “tend to play meaningful roles” in attracting visits and spending, the analyst tells investors in a research note. Baird recommends Williams-Sonoma given its more diversified product assortment, including smaller ticket kitchen items.