SharkNinja shares have been on a winning streak as analysts at Jefferies have initiated coverage on the provider of household appliances and cleaning solutions with a ‘Buy’ rating.
Shares of SharkNinja traded higher on Wednesday morning, up 0.4% at US$41.88 shortly after the market opened, and have gained 23.1% week-over-week.
Jefferies analysts, along with their ‘Buy’ rating, awarded the stock a $67 price target, representing an upside of 91% to SharkNinja’s share price at the time of writing.
“We believe SN is well positioned to grow its market share across new and existing categories given its global rapid innovation and commercialization flywheel model,” the analysts wrote in a note to clients.
“With its fast-growing brands and international penetration paving the way, we see significant top-line expansion opportunities along with an enviable and rising margin profile.”
The Jefferies analysts believe SharkNinja’s international segment is still in its early stages of growth, presenting ample opportunities for expansion.
“If the Europe and Rest of World segments maintain their current trajectory (about 21% sales compound annual growth rate between 2020 and 2022), we believe the International segment could surpass the $1 billion mark (on top of $3 billion from North America) before the end of 2024,” they wrote.
The analysts added that SharkNinja’s current valuation is “very attractive” with shares trading at about seven times its enterprise value (EV)/earnings before interest, taxes, depreciation and amortization (EBITDA) based on their 2025 financial year estimate of $800 million.
“Our $67 PT is based on about 12 times 2025 financial year EV/EBITDA, at the midpoint to best-in-class lifestyle and equipment brand peers that currently trade from about 10 times to about 15 times,” they wrote.
“SN's brands are best-in-class, its total addressable market is large while penetration low, and its 3rd party manufacturing supply base drives higher margins and strong free cash flow compared to peers.”
Contact the author at emily.jarvie@proactiveinvestors.com
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