SharkNinja ‘s history of innovation will set its stock for an extremely positive growth outlook, according to Goldman Sachs. The investment bank initiated coverage of the consumer products company with a buy rating, setting a 12-month price target of $52. That implies nearly 28% upside from the stock’s Tuesday close. Since listing on the New York Stock Exchange at $30 a share this summer , SharkNinja has rallied 36%. SN YTD mountain SN YTD chart Analyst Brooke Roach pointed to the firm’s established track record of market disruption and solid growth across product lines. Given both Shark and Ninja’s relatively low unaided brand awareness, the analyst thinks there could be even more upside opportunity from the company’s advertising expenditures. “Looking ahead, we believe the company’s innovation focus will enable growth even against a choppy macro backdrop, evidenced by SN’s ability to outperform peers in 2022 and 2023 YTD on strength in beauty / outdoor,” she wrote. Meanwhile, the analyst highlighted the company’s success in entering new categories, which could also provide incremental growth opportunities. For instance, Ninja’s CREAMi frozen treat maker has now evolved into a $150 million business, although the category was only a third of the size upon the firm’s entrance. Roach added that SharkNinja has stronger revenue growth and EBITDA margins versus its peers, which will only look better from here. “We see significant margin opportunity on the horizon, with near-term profit set to benefit from transitory cost recapture tailwinds (freight and input costs), while longer-term EBIT margins can benefit from leverage and marketing efficiency,” the analyst wrote. — CNBC’s Michael Bloom contributed to this report.
