Oppenheimer Raises PT on SharkNinja (SN) Stock

SharkNinja, Inc. (NYSE:SN) is one of the Best Stocks to Buy According to Abrams Bison Investments. On July 28, Oppenheimer lifted the company’s price objective to $135 from $120, while keeping an “Outperform” rating. Moving forward, the firm is increasingly confident in management’s ability to fuel a top and bottom-line acceleration in H2 2025 into FY26, thanks to the anticipations for reaccelerating top-line momentum and proactive efforts to navigate tariff headwinds.

While navigating an evolving tariff landscape, SharkNinja, Inc. (NYSE:SN) developed and started implementing a comprehensive mitigation strategy via manufacturing efficiencies, strategic retail partnerships, and targeted operational optimizations. SharkNinja, Inc. (NYSE:SN)’s proactive supplier diversification placed it with significant and improving supply chain flexibility. Amidst robust profitability and strong demand for its 5-star products, it is confident in its ability to continue providing sustainable growth.

SharkNinja, Inc. (NYSE:SN)’s net sales rose 14.7% to $1,222.6 million in Q1 2025 as compared to $1,066.2 million during the same period of last year, or 14.9% on a constant currency basis. This was due to growth in each of its 4 major product categories of Food Preparation Appliances, Cooking and Beverage Appliances, Cleaning Appliances, and Beauty and Home Environment Appliances.

Voss Capital, LLC, an investment management company, released its Q1 2025 investor letter. Here is what the fund said:

“During the “liquidation day” tariff malaise, we significantly upsized our position in SharkNinja, Inc. (NYSE:SN). We view SN as a secularly growing category leader with a unique blend of innovation and agility, brand equity, and global expansion potential. While some competitors dismiss SN as a mere imitator—quick to reverse-engineer their products and undercut them on price—they misunderstand the company’s MO and customer value proposition entirely.

SharkNinja is not chasing cheap fads that will fizzle—it’s an innovation powerhouse that routinely generates consumer phenomena and creates and expands new categories. From the wildly successful CREAMi and Ninja Swirl appliances, to the virality of the TurboBlade fan and CryoGlow beauty devices, the company orchestrates consumer product launches that begin with deep consumer insight and a better mousetrap, followed by organically viral social media buzz, and ends with dominant shelf space at major global retailers.

We think SN is poised for margin expansion. Gross margins hover around 50%, with a narrow range across categories. The company is investing heavily in R&D (7.2% of sales vs a peer average of ~3.5%) and sales & marketing (23%), but this spend is front-loaded to support market entry and new category expansion. In mature markets like the US, marketing spend can fall to as low as 7% of revenue, while new markets begin at 25%+ as the company builds brand awareness and shelf presence. Over time, this dynamic creates meaningful operating leverage. Additionally, as the company continues to build a direct line to customers, their sales mix is shifting more to higher gross and contribution margin direct-to-consumer (“DTC”) revenue. The company has been building out its DTC team and will revamp its website and CRM later this year. We estimate DTC sales in the U.S. are only around 10% today, providing a long runway for growth…” (Click here to read the full text)

While we acknowledge the potential of SN as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.