Consumer products stock rushing to leave China, Wall Street betting it can pull it off
Wall Street is optimistic SharkNinja will be able to move its sourcing completely out of China. The company, which manufactures appliances such as vacuums and the Ninja Creami ice cream maker, rallied nearly 13% on Thursday following a first-quarter earnings beat. SharkNinja raised its guidance for its fiscal-year earnings, revenue growth and adjusted EBITDA estimates. Analysts applauded not only SharkNinja’s results, but also its plans to fully diversify out of China before year’s end. This gives it a “multi-year head start on competitors,” noted Jefferies analyst Randal Konik. Bank of America analyst Alexander Perry also said: “SN has shifted sourcing into S. East Asian countries such as Vietnam and Cambodia SN’s tariff mitigation includes increasing ASP’s on over 100 products, eliminating lower margin SKUs, and value engineering products to lower production costs. SN does not plan on reducing R & D costs.” Analysts remained resoundingly bullish on SharkNinja. Some also raised their price targets for the stock, including BofA and UBS. JPMorgan maintains overweight rating, price target of $98 Analyst Andrea Teixeira’s target implies about 7% upside from Thursday’s close. “We think there was a lot of debate on whether SN would/ wouldn’t guide given the tariff environment and precedent from discretionary peers. The fact that that the company guided inclusive of tariffs and actually raised estimates was a very positive surprise … In a normal environment investors may have been disappointed by that sort of update from SN, but in the current operating environment the results/outlook stand out, in our view, and speak to confidence in underlying business momentum and strength of the management team in deftly navigating the tariff environment.” Goldman Sachs keeps buy rating, raises price target to $112 from $100 The bank’s forecast is 22% above the stock’s current price. “We step away from the quarter with our constructive view intact. While we recognize the discretionary and geopolitical backdrop remains choppy overall, and note that execution risk remains elevated, we believe this provides opportunity for brands with momentum to capture additional market share. Here, the proactive actions SN has been taking to diversify its sourcing exposure outside of China over the last several quarters positions the company well to capitalize on potential shelf space opportunities relative to peers,” said analyst Brooke Roach. Oppenheimer stands by outperform rating, raises price target to $120 from $105 Oppenheimer’s updated price target implies shares could rally 31% from here. “We believe today’s report likely increases investor confidence in management’s ability to navigate any future tariff developments. Our PT goes to $120 from $105, reflecting our increased conviction in the company’s ability to navigate the backdrop better than peers, leading to potentially even stronger share gains in the future.” Guggenheim reiterates buy rating but lowers target price to $120 from $135 The firm’s new target still implies upside of 31% over the next 12 months. “Bottom line, given the benefits associated with SN’s a) trusted vendor/supplier relationships, b) ability to value engineer across its assortment — i.e., configurations, features, technology, packaging, and more, and c) unmatched product innovation pipeline — supported by significant market investments, we continue to view SN as one of the best positioned to navigate through today’s dynamic macro-economic backdrop,” writes analyst Stephen Forbes. UBS maintains buy rating and lifts price target to $121 from $118.80 The bank’s 12-month price target is 32% above where SharkNinja is currently trading. “1Q25 sales growth and updated FY25 outlook beat market expectations as before the print investors concerned on slower 2Q/2025 growth under the tariffs. But we are impressed by SN’s proactive actions and growth potential amid uncertainties.” Bank of America keeps buy rating, raises price objective to $125 BofA’s updated price target implies a potential upside of 36%. “SN remains a top pick and a rare DD% consumer products growth company. We see potential for continued upward EPS revisions given: (1) strong new product contribution led Ninja Swirl, Shark CyroGlow (could add $100mm in 2025), and Shark TurboBlade; (2) significant growth in Int. led by France and Germany; (3) continued wholesale expansion especially in sporting goods, coolers, & outdoor fans/cooking.” Canaccord Genuity Capital Markets reiterates buy rating and increases price target to $127 from $112 The firm’s new forecast equates to 39% upside. “We cut estimates around Liberation Day expecting numbers to come down but similarly raise them as our confidence in the company’s ability to mitigate tariffs and grow in an uncertain macro backdrop has only increased. While peers will likely pull back on innovation and investments, SN will use the current market uncertainty to accelerate investments and further widen its competitive moat.” Jefferies maintains buy rating and $175 price target Analyst Randal Konik’s target implies upside of 91%. “The Shark and Ninja brands are thriving, driven by best-in-class mgmt and strong execution. The company’s innovation flywheel continues to deliver, fueling a compelling global expansion story. With such robust performance and growth potential, we believe SN shares present the best risk/ reward within our coverage and a compelling buying opportunity for investors today.”
