SharkNinja Emerges As A Strong Buy: Analyst Forecasts Growth Amid Strategic Innovations

BofA Securities analyst Alexander Perry initiated coverage on the shares of Sharkninja Inc SN with a Buy rating and announced a price target of $90.00.

In less than three decades, the company has become a leading household brand  and the analyst thinks it is poised for further growth.

The analyst expects SharkNinja’s data driven approach to innovation to lead to more market share gains in new and existing categories and shelf space/SKU expansion at retailers, including Amazon.com Inc AMZN, Walmart Inc WMT and Costco Wholesale Corporation COST.

The analyst noted that SharkNinja continues to gain share in 6 of its 7 top categories, according to Nielsen point-of-sale data.

The company plans to launch about 25 new products each year, ~ 20 iterations of existing items and 5 new products by analyzing customer interactions and feedback, the analyst said.

The analyst believes these efforts should lead to significant shelf space/SKU expansion at key retailers, given SN tailors each product to the individual retailer to fit the seller’s pricing strategy.

The analyst anticipates SharkNinja to replicate the success it has had in the beauty category in the outdoor/sporting goods category.

The analyst sees early signs of success in sporting goods with new product launches including the Ninja FrostVault cooler, which quickly sold out at its initial pilot at Dick’s Sporting Goods Inc DKS.

The $90 price target is based on 20-21X the analyst’s C25 EPS of $4.35, a premium to other leisure brands, which the analyst believes is justified given a higher 3-year sales CAGR outlook and higher EBITDA margins.

Price Action: SN shares are trading higher by 2.13% at $73.71 at the last check Thursday.