On Friday, Canaccord Genuity maintained a Buy rating on SharkNinja (NYSE: SN) shares and increased the price target to $128 from $126. The firm's decision comes in anticipation of the company's Q3 results set to be released on October 31.
The analyst cited favorable findings from recent surveys of 80 SharkNinja wholesale locations, including 50 Target stores, which assessed the demand and inventory for products such as the Ninja SLUSHi, Ninja CREAMi, and Ninja Luxe Café.
The surveys also included feedback from 30 Ulta Beauty (NASDAQ:ULTA) locations regarding SharkNinja's new Shark FlexFusion, compared to its predecessor, the FlexStyle. The FlexFusion, noted for its ability to handle both wet and dry hair, received positive remarks for its enhanced capabilities. Moreover, SharkNinja launched the CryoGlow LED face mask in the U.K., with expectations of a future launch in the U.S. market.
The analyst highlighted the continued success of the Ninja CREAMi, which has been receiving excellent reviews, and anticipates increased momentum as the holiday season approaches. Despite the Ninja SLUSHi and Luxe Café being newer to the market, they have shown strong initial sales.
Based on these observations and strong web traffic data, Canaccord Genuity has raised its Q3 2024 earnings estimates for SharkNinja.
SharkNinja has previously indicated an expectation of mid- to high teens percentage growth in adjusted sales for the second half of the year, with Q3 having clearer visibility.
The analyst suggests that the investment community has set a higher bar, anticipating growth in the mid- to high-20s percentage range. Despite SharkNinja being well-recognized in the market, there is a belief that strong Q3 results could attract new investors.
In conclusion, the firm expects SharkNinja's business momentum to persist and has raised the price target to $128, driven by increased earnings estimates. The company's upcoming Q3 results are eagerly awaited by both analysts and investors.
In other recent news, SharkNinja has been making headlines with its robust product innovation and successful new launches, which have been key to the company's growth strategy.
The firm's confidence is bolstered by SharkNinja's impressive quarterly results, which surpassed expectations, leading to a raised outlook. Jefferies Financial Group has also raised its stock target from $100 to $115, maintaining a Buy rating, following these strong results.
Furthermore, SharkNinja's management is planning for the launch of 25 new products in 2024 and considering 90 more ideas for 2025. This proactive approach to product development and innovation is seen by Canaccord Genuity as a strategy likely to sustain the company for at least three years.
In other recent developments, SharkNinja announced new product developments for the EMEA region at the IFA Berlin 2024 event, signaling further growth potential. Analysts see this geographic expansion, coupled with SharkNinja's strong financial performance and commitment to innovation, as key factors underpinning the company's success.
InvestingPro Insights
SharkNinja's strong market position and growth prospects, as highlighted in the article, are further supported by real-time data and insights from InvestingPro. The company's market cap stands at $15.08 billion, reflecting its significant presence in the home appliance sector.
InvestingPro data shows that SharkNinja's revenue growth is robust, with a 31.39% increase in the most recent quarter. This aligns with the analyst's expectations of strong Q3 results and the company's projection of mid- to high teens percentage growth in adjusted sales for the second half of the year.
Two key InvestingPro Tips are particularly relevant to the article's content:
1. Analysts anticipate sales growth in the current year, which corroborates Canaccord Genuity's positive outlook and increased price target.
2. The company is trading near its 52-week high, with the current price at 95.69% of the 52-week high. This suggests that the market is recognizing SharkNinja's strong performance and growth potential.
These insights, along with 15 additional tips available on InvestingPro, provide a comprehensive view of SharkNinja's financial health and market position. For investors looking to delve deeper into SharkNinja's prospects, InvestingPro offers a wealth of additional data and analysis to inform investment decisions.
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