Jefferies sees Arhaus nearing a turnaround

Jefferies has upgraded Arhaus to buy from hold, saying the home furnishings retailer may be close to improving after a difficult stretch. The firm lifted its price target to $10 from $9.50, suggesting about 28% upside from Friday’s close. Analyst Jonathan Matuszewski said the company is working to build brand awareness through wider catalog distribution and increased digital marketing. He also pointed to rising website traffic and Arhaus’s early move into businesstobusiness sales as possible supports for future growth. Shares of Arhaus have fallen nearly 31% so far this year as weaker consumer spending and broader economic uncertainty have pressured the stock and its margins. After the upgrade, the shares rose more than 6%.