On Friday, Canaccord Genuity adjusted its worth goal for Lifetime Manufacturers (NASDAQ:), a number one world supplier of kitchenware, tableware and different merchandise, lowering it to $9.00 from the earlier $10.00. Regardless of the lower cost goal, the agency maintained a Purchase ranking on the inventory.
The modification within the worth goal displays Canaccord Genuity’s evaluation of varied information sources, together with Circana gross sales efficiency, Semrush search information, and social media exercise. These metrics have been reviewed for 4 firms inside their protection universe, which, alongside Lifetime Manufacturers, consists of (NWL), Energizer Holdings (NYSE:), and Reynolds Shopper Merchandise (NASDAQ:).
The agency’s determination to regulate the worth goal for Lifetime Manufacturers was primarily based on the decreased estimates knowledgeable by the Circana information. The analyst famous that whereas changes have been made to their estimates, the scores for every of the shares have been maintained.
Canaccord Genuity additionally expressed a good view on Newell Manufacturers’ prospects, highlighting the corporate’s efficiency as significantly robust. The agency anticipates a optimistic earnings report subsequent Friday, October 25, citing strong efficiency from Newell Manufacturers’ Sharpie and Graco (NYSE:) manufacturers as indicators of the effectiveness of the administration’s turnaround technique.
The evaluation by Canaccord Genuity serves as a precursor to the upcoming third-quarter earnings stories, offering traders with adjusted expectations primarily based on the newest accessible gross sales and market information.
In different latest information, Lifetime Manufacturers reported its Q2 2024 earnings, assembly market expectations regardless of a slight lower in web gross sales to $141.7 million from the earlier yr’s $146.4 million. The corporate skilled progress in e-commerce, which now represents 18.9% of revenues, and elevated market share in most classes. Nevertheless, it additionally reported a web lack of $18.2 million, together with a noncash loss associated to its funding in Grupo Vasconia.
Lifetime Manufacturers maintains a sturdy steadiness sheet with roughly $119 million in liquidity. The corporate has reiterated its monetary steering for 2024, projecting web gross sales between $690 million and $730 million, adjusted revenue from operations to be $49 million to $54 million, and adjusted web revenue anticipated to vary from $15 million to $17 million.
Regardless of challenges from the UK’s financial downturn and weakened demand in some worldwide markets, Lifetime Manufacturers is implementing new methods to counter these points. The corporate additionally highlighted its deal with innovation and funding in R&D, as evidenced by the profitable launch of the Construct-A-Board product.
InvestingPro Insights
Latest InvestingPro information presents further context to Canaccord Genuity’s evaluation of Lifetime Manufacturers (NASDAQ:LCUT). Regardless of the decreased worth goal, there are some optimistic indicators for the corporate. An InvestingPro Tip highlights that web revenue is predicted to develop this yr, aligning with analysts’ predictions that the corporate will return to profitability. This forecast might assist Canaccord’s maintained Purchase ranking, regardless of the lowered worth goal.
The corporate’s price-to-book ratio of 0.65 means that the inventory could also be undervalued relative to its guide worth. This metric, mixed with the InvestingPro Tip indicating that the valuation implies a robust free money circulate yield, may very well be components in Canaccord’s continued optimistic outlook on the inventory.
It is price noting that Lifetime Manufacturers has maintained dividend funds for 14 consecutive years, demonstrating a dedication to shareholder returns even in difficult occasions. The present dividend yield stands at 2.63%, which can enchantment to income-focused traders.
For these all for a deeper dive into Lifetime Manufacturers’ monetary well being and market place, InvestingPro presents 7 further suggestions, offering a extra complete evaluation of the corporate’s prospects.
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