On Monday, Lifetime Brands (NASDAQ:), a provider of kitchenware and home solutions, received a stock price target increase from DA Davidson to $11.50, up from the previous $9.50, while the firm retained a Buy rating on the stock.
The adjustment follows the company’s reported fourth-quarter earnings for 2023, which surpassed expectations, particularly noting a significant uptick in international organic sales. This marks the first year-over-year growth since the third quarter of 2021.
The company’s recent success has been attributed to its new go-to-market strategy internationally, which has been effective in achieving market share gains. Moreover, Lifetime Brands is set to launch a new product line in collaboration with Dolly Parton, which will be distributed across Dollar General (NYSE:)’s extensive network of 20,000 stores.
DA Davidson anticipates that Lifetime Brands will provide its financial guidance for 2024 in May as it typically does. The firm has increased its annual EBITDA estimates for the company, with projections for 2024 up by 4% and for 2025 by 6%. The new price target is based on a multiple of 6.5 times the estimated EBITDA for 2025, which has been revised upward from $62 million to $66 million.
The analyst from DA Davidson expressed confidence in the potential for Lifetime Brands’ stock valuation multiple to expand. This optimism is based on the company’s ability to maintain consistent organic top-line growth. The introduction of the Dolly Parton line and the company’s strategic international advancements have been key factors in this positive outlook.
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