
SPWH Stock Forecast & Price Target
SPWH Analyst Ratings
Bulls say
Sportsman's Warehouse Holdings Inc. has demonstrated solid growth in key product categories, notably fishing with a 14% year-over-year increase and hunt/shoot with a 5% rise, contributing to an overall sales increase of 2%. The company's adjusted EBITDA of $18.8 million highlights an improved margin of 5.6%, bolstered by higher gross margins and effective cost management strategies. Management's focus on inventory efficiency and store productivity is expected to enhance operational cash flow, signaling a positive trajectory for the company's financial health moving forward.
Bears say
The negative outlook on Sportsman's Warehouse Holdings Inc. is primarily driven by its high net debt of $180 million, indicating significant financial leverage at 5.5x, coupled with a projected decline in adjusted EBITDA margins and sales for fiscal 2025, reflecting weakening demand since mid-October. Concerns are further exacerbated by challenges faced by its core consumer demographic, characterized by lower- to middle-income households suffering from inflationary pressures that reduce discretionary spending on outdoor recreational activities. Additionally, the company operates in a regulatory environment fraught with risks related to compliance and potential legislative changes surrounding firearms and ammunition, heightening operational uncertainties and potentially impacting future sales.
This aggregate rating is based on analysts' research of Sportsman's Warehouse Hlds and is not a guaranteed prediction by Public.com or investment advice.
SPWH Analyst Forecast & Price Prediction
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