BofA reiterates SharkNinja stock Buy rating, $140 target

Published 20/03/2025, 11:08
BofA reiterates SharkNinja stock Buy rating, $140 target

On Thursday, BofA Securities maintained a positive stance on SharkNinja (NYSE: SN), reiterating its Buy rating and a price target of $140.00. Currently trading at $90.26 with a market capitalization of $12.2 billion, the company enjoys a strong bullish consensus among analysts. The firm’s analyst, Alex Perry, highlighted the company’s sustained robust growth both in the U.S. and internationally. According to InvestingPro data, the company has delivered an impressive 51.5% return over the past year. SharkNinja’s performance is backed by high sell-through visibility with U.S. retailers, as it tracks daily point-of-sale (POS) data, indicating continued strong demand for its products. This strong demand is reflected in the company’s robust revenue growth of nearly 30% over the last twelve months. For deeper insights into SharkNinja’s growth metrics and financial health, InvestingPro offers comprehensive analysis with 10+ additional exclusive tips.

The analyst’s remarks are supported by recent Nielsen data, which revealed POS growth of 18.3% in January and 16.8% in February, significantly outperforming the total market by over 11 percentage points. For the first quarter of 2025 to date, through March 8, SharkNinja’s year-over-year increase stood at 18.1%, compared to the market’s 5.8% and the fourth quarter’s 21.7%. This growth is evident across core categories, including blenders, which saw an 18% rise, vacuums at 10%, and fryers surging by 43%. Additionally, new product lines such as hair dryers have seen a more than fivefold increase in sales.

Perry noted that Nielsen spending data has shown an 84% correlation with SharkNinja’s North American sales since the first quarter of 2023. However, the data has consistently underreported actual figures by an average of 8 percentage points over this period. Based on the current data, BofA Securities anticipates potential upside to the Street’s domestic sales growth forecast of 8% for the first quarter.

SharkNinja’s performance and the analyst’s confidence in the company’s growth trajectory are reflected in the maintained Buy rating. The firm believes that SharkNinja is well-positioned to continue its growth trend, leveraging its strong market presence and expanding product portfolio. InvestingPro’s analysis indicates a GOOD overall financial health score of 2.61, suggesting solid fundamentals supporting the company’s expansion strategy. The stock currently trades at a P/E ratio of 31.9, with InvestingPro’s Fair Value calculation suggesting the stock is fairly valued at current levels.

In other recent news, SharkNinja reported impressive financial results for Q4 2024, significantly surpassing earnings and revenue forecasts. The company achieved an EPS of $1.40, exceeding the forecasted $0.97, and reported revenue of $1.79 billion, surpassing expectations by $400 million. This marks SharkNinja’s fourth consecutive quarter of surpassing both revenue and earnings expectations. Jefferies analyst Randal Konik increased the price target for SharkNinja shares to $175.00 from $150.00, reaffirming a Buy rating on the stock. Konik praised the company’s robust product innovation pipeline and international expansion efforts, particularly in Europe and Latin America.

Jefferies’ analysts expressed confidence in SharkNinja’s growth prospects, citing the strength of its brands, Shark and Ninja, and the company’s ability to expand product offerings and market presence. The firm’s analysts also emphasized the company’s potential for growth with new retailers and in new geographic markets. SharkNinja’s management has guided a low double-digit percentage increase in top-line revenue for the upcoming fiscal year. The company’s strategic acceleration in investments positions it for long-term sustainable growth.

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