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Tuesday, Canaccord Genuity maintained a Buy rating on SharkNinja (NYSE: SN) stock and raised the price target to $90 from $82. The adjustment follows a comprehensive survey of customer doors over the past two weeks, which included visits to 22 Dick's Sporting Goods (NYSE:DKS), 30 Ulta Beauty (NASDAQ:ULTA), and 30 Target locations.
The purpose was to assess the popularity and demand for SharkNinja's products, particularly the Ninja FrostVault, Ninja SLUSHi, Ninja CREAMi, Shark SmoothStyle, and Shark FlexStyle Air.
The survey revealed that the Ninja FrostVault showed slightly better awareness than the competing YETI Roadie 15 hard cooler at Dick's Sporting Goods, with staff well-informed about the product's innovative features like its dry storage area.
Meanwhile, the Ninja SLUSHi was found to be out of stock on SharkNinja's website, indicating high demand, though it was not widely recognized by Target employees, which aligns with its recent debut and limited availability in the wholesale channel.
Additionally, the Shark FlexStyle Air has reportedly gained momentum on social media, and Shark Beauty products have expanded their presence, now available in two additional Ulta locations. Based on these findings, Canaccord Genuity has raised its Q2 2024, full-year 2024, and 2025 earnings estimates for SharkNinja.
The company had previously guided towards a 20% sales growth for the second quarter, while Canaccord Genuity's estimate is slightly higher at 22%, compared to the 18% consensus.
The firm now anticipates SharkNinja will exceed the high end of its full-year 2024 guidance for adjusted net sales growth, adjusted EBITDA, and adjusted EPS. The increased price target to $90 is primarily driven by these raised estimates and the positive results from the firm's primary research coupled with robust web traffic data.
In other recent news, SharkNinja has seen its share target raised by several financial firms. BofA Securities increased its price target for SharkNinja to $95.00, reflecting confidence in the company's strategic product distribution and expansion.
The firm's analysis indicates that SharkNinja has successfully implemented a halo product strategy, exemplified by the company's Ninja FrostVault cooler. BofA Securities also projects that SharkNinja will significantly scale its cooler business in 2025.
UBS raised its price target for SharkNinja shares from $76.00 to $83.50, citing the company's strong financial performance. The firm increased its earnings per share forecasts for the years 2024 to 2026 by 6% to 9%, based on a discounted cash flow analysis.
JPMorgan initiated coverage on SharkNinja with an Overweight rating and a price target of $70.00, highlighting SharkNinja's potential for market share gains, expansion into new segments, and geographic growth.
Lastly, Canaccord Genuity maintained its Buy rating on SharkNinja and increased the stock's price target to $75.00, following a favorable survey of customer feedback and product popularity. These recent developments suggest a positive outlook for SharkNinja from the analyst community.
InvestingPro Insights
In light of Canaccord Genuity's positive outlook on SharkNinja, current metrics from InvestingPro further enrich the investment narrative. SharkNinja, with a market capitalization of $10.05 billion, is trading at a P/E ratio of 54.65, indicating high investor expectations for future earnings. This is supported by a notable 18.65% revenue growth over the last twelve months as of Q1 2024. Furthermore, the company's gross profit margin stands at a healthy 45.56%, reflecting its capacity to maintain profitability amid sales growth.
InvestingPro Tips suggest that SharkNinja is expected to see net income growth this year, aligning with Canaccord Genuity's raised earnings estimates. Additionally, 4 analysts have revised their earnings upwards for the upcoming period, which may signal confidence in the company's financial performance. For investors seeking more comprehensive analysis, InvestingPro offers additional tips, helping them make informed decisions. Use coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and find out how many more tips are available on SharkNinja at: https://www.investing.com/pro/SN
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