On Wednesday, Lifetime Brands (NASDAQ:LCUT), a provider of kitchenware and home solutions, had its price target adjusted by DA Davidson from the previous $14.00 to $11.50.
Despite this change, the firm continues to advocate a Buy rating for the stock.
The revision follows Lifetime Brands' third-quarter earnings report on November 7, which fell short of market expectations in terms of sales and EBITDA. The company also revised its 2024 guidance downwards, attributing part of this adjustment to an anticipated delay in Dolly Parton branded product shipments, now expected in the first quarter of 2025 instead of the fourth quarter of 2024.
Lifetime Brands experienced weaker replenishment orders from U.S. retailers during the third quarter of 2024. However, the company did witness some positive developments, including an 8.4% increase in international organic sales due to expanded distribution and a 10.7% year-over-year growth in U.S. e-commerce sales.
DA Davidson has revised its EBITDA estimate for 2024 downwards by 9% and has also introduced its 2026 estimates. The new price target of $11.50 is based on 7 times the firm's projected 2026 EBITDA of $64.0 million. The decision to roll forward the price target to reflect the next fiscal year was also a factor in the adjustment.
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