SharkNinja, a leading manufacturer of home appliances, has caught the attention of William Blair analyst Phillip Blee. In a recent research note, Blee initiated coverage of SharkNinja stock (ticker: SN) with an Outperform rating, expressing optimism about the company’s future prospects.
SharkNinja, known for its wide range of products including coffee machines, blenders, vacuum cleaners, and hair dryers, became an independent public company in July after being spun out by Chinese company JS Global Lifestyle. Despite the challenging economic conditions resulting from the pandemic, Blee believes SharkNinja is well-positioned for growth.
According to Blee, SharkNinja’s success can be attributed to its consistent execution, expansive product development team, and diverse supply-chain network. These factors, combined with the company’s ability to cater to value-conscious consumers through a range of product offerings at varying price points, make it a compelling choice for investors.
When comparing valuations, SharkNinja stock is currently trading at 13.8 times forward earnings, whereas competitor Keurig Dr Pepper (KDP) trades at 17.1 times. Blee argues that given SharkNinja’s strong margins, healthy cash flow, and potential for further growth, the current valuation represents an attractive entry point for investors.
As evidence of SharkNinja’s promising future, its stock has already risen by 4.1% during premarket trading on Wednesday, reaching $44.77 per share. It is important to note that SharkNinja has also garnered attention as a recent stock pick.