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Among the growth stocks that investors have flocked to in recent months Spin master (TSX: TOY) A real winner. Indeed, Spin Master strains have more than tripled since the outbreak of the pandemic. Growth investors who bought this Canada’s top-growing stock dip were rewarded.
There is reason to believe that this stock has much more room to do.
Let’s see why Spin Master shares want investors to keep their radar right now.
Analysts bullish on Spin Master stocks
Over the past month, Spin Master shares have traded almost flat. Martin Landry, an analyst at Stifel, said Spin Master’s performance is likely to be the result of short-term expectations. Investors may be concerned about potential supply chain disruptions. After all, as a consumer discretionary play, Spin Master could see some headwinds in this regard.
But Laundry is one of the bullish analysts on this growth stock. His view is that these concerns may be overstated given Spin Master’s strong track record over the years. Given that the company’s forward EV / EBITDA is nine times higher, there is room for improvement from here. Compared to the major competitors in this area, Spin Master trades at a relative discount of about 18%. Therefore, this growth stock has a valuable treatise.
Spin Master is expected to record the highest EBITDA of the year at $ 345 million. At this rate, which is 14% higher than the previous year, Spin Master’s valuation could look even cheaper if the company exceeds its quote.
Indeed, given Spin Master’s previous excellent performance, such a bullish outlook seems justified. This is the stock that analysts are currently bullish on. Currently Spin Master’s Average rating Is a buy and the price target means an increase of more than 30% from these levels.
Spin Master stocks could grow significantly in the coming quarters as the global economy recovers from the pandemic. Indeed, this stock has been very successful so far this year. However, the stagnation of Spin Master stocks in recent months may indicate a leveling period that provides investors with an entry point worth considering.
Currently, I remain bullish on Spin Master’s long-term growth outlook. Therefore, I consider this current period to be a potential accumulation period.
It remains to be seen if the stock will continue to hit record highs in the short term. But in the long run, this looks like a strain suitable for tremendous growth.
It’s time to buy a Spin Master stock dip The Motley Fool Canada
https://www.fool.ca/2021/10/19/its-time-to-buy-the-dip-on-spin-master-stock/ It’s time to buy a Spin Master stock dip The Motley Fool Canada