Arhaus: Shares Are Cheap Enough And Prospects Strong Enough To Justify A Bullish Outlook

Arhaus is upgraded to a 'buy' due to its strong balance sheet, attractive valuation, and growth-oriented investments despite recent share price weakness. ARHS leverages a vertically integrated model, expanding showrooms and investing in technology and distribution to drive long-term revenue and margin improvement. Management targets 2026 revenue of $1.43–$1.47 billion, EBITDA of $150–$161 million, and net profits of $66–$75 million, supported by a robust net cash position.