Cricut jumps as Goldman says "buy" DIY arts-and-crafts tool maker

Cricut

19/04/2021 17:13

** Shares of Cricut Inc  CRCT.O  up 15.5% at $23.10 as
Goldman Sachs initiates with "buy" and PT of $35
    ** Cricut, whose connected machines, design apps, and
accessories and materials allow users to make personalized
crafts, went public last month at $20 in IPO led by Goldman and
Morgan Stanley  urn:newsml:reuters.com:*:nGNXb3ws4j
    ** GS says co's "highly engaged base of automated crafters
can be increasingly monetized through subscriptions over time"
    ** CRCT poised to see "strong" double-digit rev growth with
sustainable EBITDA margins over 20%, GS says
    ** GS analysts say pull-forward impact a key investor
concern, as rev growth roughly doubled yr/yr in 2020 to $959 mln
amid pandemic stay-at-home orders, however, says "evidence of
strong growth pre-dates COVID"
    ** Other analysts also bullish: Citigroup starts with "buy"
($25 PT), Barclays starts with "overweight" ($26 PT)
    ** CRCT shares fell to as low as $14.88 on their Mar 25
debut

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com 1-332-219-1430))