Canaccord has increased its price target for SharkNinja (SN, Financial) to $136 from a previous target of $127, while maintaining a Buy rating on the stock. This adjustment comes as the firm prepares for the company's Q2 financial results. To assess market trends, Canaccord conducted a survey across 83 SharkNinja retail locations, including 50 Target stores, to evaluate the performance and inventory levels of products like the Ninja Swirl by CREAMi and Ninja Crispi. Additionally, they examined 30 Ulta Beauty stores to gauge interest in the Shark CryoGlow. Findings indicate robust initial interest in the Ninja Swirl and Ninja Crispi, reinforcing the stock's status as a focus for 2025. The company is seen as a promising option for mid-cap growth and GARP investors, potentially offering long-term value.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for SharkNinja Inc (SN, Financial) is $122.47 with a high estimate of $175.00 and a low estimate of $101.00. The average target implies an upside of 10.82% from the current price of $110.51. More detailed estimate data can be found on the SharkNinja Inc (SN) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, SharkNinja Inc's (SN, Financial) average brokerage recommendation is currently 1.7, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
SN Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- SharkNinja Inc (SN, Financial) reported its 8th consecutive quarter of double-digit revenue growth, with net sales increasing nearly 15% year over year.
- The company achieved an adjusted gross margin of 50% and adjusted EBITDA of $200 million in Q1 2025.
- SharkNinja Inc (SN) has successfully diversified its manufacturing capabilities, expecting to move 90% of its US volume outside of China by the end of Q2 2025.
- The company continues to expand into new and adjacent categories, launching successful products like the Slushy frozen drink maker and Cryoglow skincare product.
- SharkNinja Inc (SN) is committed to launching at least 25 new products in 2025, maintaining its focus on innovation and product development.
Negative Points
- The company faces significant challenges from tariffs, with a 145% tariff on China and 10% on Southeast Asia impacting costs.
- Adjusted EBITDA decreased by 13% year over year, largely due to substantial investments in growth initiatives.
- SharkNinja Inc (SN) anticipates some revenue disruption in North America due to potential out-of-stock situations and supply chain challenges.
- The transition of the Mexico business from a distributor model to a direct market resulted in a one-time revenue reversal in Q1.
- Adjusted net income for Q1 2025 decreased to $124 million from $149 million in the same period last year.
