UPDATE: Morgan Stanley Starts Cricut, Inc. (CRCT) at Overweight Seeing Shares Attractively Priced

Morgan Stanley analyst Katy Huberty initiates coverage on Cricut, Inc. (NASDAQ: CRCT) with a Overweight rating and a price target of $23.00 on the belief that the company is well-positioned to benefit as the market leader in a specialized but fast-growing $36B+ US traditional crafting market, with low market penetration, a differentiated vertically-integrated platform, attractive aftermarket sales, and a highly engaged and passionate user base.

The analyst stated "There are risks ahead, such as Cricut's ability to maintain strong growth and user engagement in a post-COVID/reopening scenario, and longer-term as the company expands its product portfolio and geographic reach, but at <14x EV/EBITDA, we see shares as attractively priced given our expectation for low double digit Y/Y revenue growth and mid-to-high teens EBITDA growth over the next 2 years. Our $23 price target assumes Cricut trades to a target 16.2x EV/EBITDA multiple, in-line with high quality consumer electronics peers but a
20% discount to its linear regression derived growth adjusted target multiple of 20.2x."

For an analyst ratings summary and ratings history on Cricut, Inc. click here. For more ratings news on Cricut, Inc. click here.

Shares of Cricut, Inc. closed at $20.00 yesterday.

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