SharkNinja stock rating reiterated at Buy by Canaccord Genuity

Investing.com - Canaccord Genuity has reiterated its Buy rating on SharkNinja (NYSE:SN) with a price target of $127.00, highlighting the company’s strong growth potential. According to InvestingPro data, the stock has shown impressive momentum with a 13% gain in the past week, though it currently trades at relatively high multiples with a P/E ratio of 32.4.

The firm believes SharkNinja can achieve low double-digit percentage sales growth over the next few years, driven by its robust innovation pipeline and geographic expansion, before transitioning to a mid-to-high single-digit long-term growth rate.

SharkNinja has demonstrated significant growth variability in recent years, posting sales increases of 35% in 2021, flat performance in 2022, 15% growth in 2023, and 32% growth in 2024, with management positioning the company for long-term double-digit percentage growth.

The company maintains a substantial innovation organization comprising 1,100 engineers worldwide who introduce approximately 25 new consumer-problem-solving products annually, contributing to SharkNinja’s 20% compound annual growth rate since 2008 in an industry that typically grows at low single-digit percentages.

Canaccord Genuity notes that with Vietnam uncertainty apparently resolved, the significant share price volatility experienced this year should subside, allowing investors to refocus on SharkNinja’s competitive advantages and fundamental performance.

In other recent news, SharkNinja reported a significant rise in revenue for the first quarter of 2025, with net sales increasing by 14.7% year-over-year to $1.2 billion, surpassing revenue forecasts of $965 million. However, the company’s earnings per share (EPS) of $0.87 fell short of the anticipated $0.95. Despite the EPS miss, analysts from William Blair maintained an Outperform rating for SharkNinja, citing stable consumer demand and ongoing supply chain diversification efforts. BofA Securities also reiterated a Buy rating with a $125 price target, highlighting SharkNinja’s robust market share gains and performance across key product categories. The company is navigating challenges related to tariffs and inventory shortages, which have impacted product availability, particularly for the Ninja brand. To mitigate these issues, SharkNinja has raised prices on about 32% of its product range and is considering domestic production for certain items. The company remains optimistic about accelerating market share gains later in the year as inventory levels stabilize.

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