On Tuesday, Canaccord Genuity sustained its Buy rating on SharkNinja (NYSE: SN) and increased the stock's price target to $75 from $68. The adjustment is based on a recent survey conducted by the firm that evaluated customer feedback, product popularity, and brand strength at various retail locations, with an eye toward the company's upcoming first-quarter results in May.
The survey included 70 different customer doors, spanning across well-known retailers such as Ulta Beauty (NASDAQ:ULTA), Walmart (NYSE:WMT), and Target. The focus was on SharkNinja's products like Shark SmoothStyle and FlexStyle Air, as well as Ninja Blast and Creami. The selection of Ulta Beauty for the survey was influenced by positive remarks about Shark Beauty during its last two earnings calls.
Walmart was included in the survey because, along with Costco (NASDAQ:COST) and Amazon (NASDAQ:AMZN), it accounted for more than 10% of SharkNinja's net sales in 2023, cumulatively making up 44.7% of sales, an increase from 42.9% in the previous year. However, the feedback from Walmart was not as insightful as that from Target, where associates provided a clearer view of SharkNinja's recent product performance.
Based on the data gathered from the retail checks and social media analysis, Canaccord Genuity has raised its estimates for SharkNinja. The firm cites the positive findings and an increased target multiple—14 times versus the previous 13 times—as the reasons for the heightened price target. The updated target reflects the firm's confidence in SharkNinja's business trends and its strong presence in the market.
InvestingPro Insights
As SharkNinja (NYSE: SN) anticipates its first-quarter results, investors may find value in considering the latest data and insights from InvestingPro. With a market capitalization of $8.58 billion and a revenue growth of 14.43% in the last twelve months as of Q4 2023, SharkNinja displays a strong financial presence. It's also worth noting that analysts have revised their earnings upwards for the upcoming period, an InvestingPro Tip that aligns with Canaccord Genuity's positive outlook.
Investors should be aware that SharkNinja is trading at a high earnings multiple, with a P/E ratio of 48.02 and an adjusted P/E ratio of 51.36 for the last twelve months as of Q4 2023. This suggests a premium valuation that the market is currently willing to pay for its earnings. Additionally, the company's stock is trading near its 52-week high, at 97.73% of the peak, reflecting a significant price uptick over the last six months.
Those considering an investment in SharkNinja can find more InvestingPro Tips to guide their decision, including insights on the company's liquidity and debt levels. For those looking to delve deeper into SharkNinja's financials and forecasts, InvestingPro offers additional analysis. Use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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