SharkNinja stock holds $125 target, BofA affirms Buy rating

Published 27/05/2025, 19:02
SharkNinja stock holds $125 target, BofA affirms Buy rating

On Tuesday, BofA Securities maintained a positive stance on SharkNinja (NYSE:SN) shares, with analyst Alex Perry reiterating a Buy rating and a $125.00 price target. The $13.3 billion consumer appliance company has garnered strong analyst support, with a consensus Strong Buy rating. The endorsement comes in light of recent Nielsen point of sale data, which indicates that SharkNinja’s sell-through increased by 10.6% year-over-year in the second quarter to date, through the week ending May 17. According to InvestingPro, the company has demonstrated impressive revenue growth of 27.3% over the last twelve months. This represents a slowdown from the 20.0% year-over-year growth witnessed in the first quarter, with a noted deceleration in weekly sell-through in the four weeks following Easter.

The growth in sales has been uneven across product categories. Fryers have seen an 18% increase, hair dryers a significant 65% jump, and fans a 38% rise. However, vacuums, which account for 41% of SharkNinja’s sales tracked by Nielsen, have seen growth slow down from 11.8% in the first quarter to just 2.7% in the second quarter to date. The company maintains a healthy gross profit margin of 48.2%, demonstrating strong pricing power across its product portfolio. Despite the mixed performance, SharkNinja is still outpacing the market, gaining over 7 percentage points in market share in its respective categories during the second quarter to date.

The Nielsen spending data, which has shown a 77% correlation with SharkNinja’s North American sales since the first quarter of 2023, tends to under-report revenue growth by an average of 5 points. This under-reporting suggests that the actual performance of SharkNinja could be stronger than the Nielsen data indicates.

Perry’s continued endorsement of SharkNinja’s stock is underpinned by the company’s robust market share gains and performance across key product categories. The analyst’s commentary underscores the company’s resilience despite a general slowdown in growth post-Easter. With the maintained price target and Buy rating, BofA Securities signals confidence in SharkNinja’s market position and potential for continued growth. InvestingPro analysis suggests the stock is currently trading near its Fair Value, with 12 additional exclusive insights available to subscribers. Discover comprehensive analysis and detailed metrics in SharkNinja’s Pro Research Report, part of InvestingPro’s coverage of 1,400+ top US stocks.

In other recent news, SharkNinja Inc. reported its first-quarter 2025 earnings, revealing a significant increase in revenue but a shortfall in earnings per share (EPS). The company achieved a 14.7% year-over-year rise in net sales, reaching $1.2 billion, surpassing revenue forecasts of $965 million. However, its EPS was $0.87, missing the projected $0.95. Despite this, the company maintains a positive outlook, with plans to launch 25 new products and expand internationally throughout the year. Analysts from firms such as Jefferies and Goldman Sachs have shown interest in the company’s strategies for tariff mitigation and product innovation. SharkNinja’s strategic focus on product innovation and market expansion is evident, with domestic and international sales increasing by 15% and 14%, respectively. The company also emphasizes cost optimization and manufacturing diversification to maintain its competitive edge. These recent developments highlight SharkNinja’s commitment to growth and adaptability in a challenging economic environment.

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