Canaccord Genuity downgraded Lifetime Brands (NASDAQ:LCUT) from Buy to Hold and lowered its 12-month price target to $3.50 from $4.00 on Monday. The research firm cited a string of disappointing outcomes since it started covering the company in March 2023 and said it now views the stock with more caution.
At the time of the note the stock was trading at $3.89, which sits above Canaccord's revised target but remains materially below InvestingPro's Fair Value estimate, a gap the firm noted when framing valuation questions despite the downgrade.
Drivers cited by Canaccord
- Consistent shortfalls versus expectations since March 2023, with Lifetime Brands failing to deliver the modest organic growth Canaccord had anticipated.
- An absence of significant M&A that had been expected to create inorganic growth and scale.
- A perceived lack of innovation and product newness across the company's assortments.
- External pressures including tariffs and the broader macroeconomic environment, which Canaccord said have created challenging conditions for the company.
Canaccord also noted the company has not provided guidance for fiscal year 2025, a factor that contributed to the firm's reduced conviction. The research house referenced Circana data indicating another weak fourth quarter and said it does not "see material evidence that the ship is turning in the right direction."
Recent financial results
Lifetime Brands reported a challenging third quarter in 2025, missing analyst expectations on both earnings per share and revenue. The company posted EPS of $0.11, below the expected $0.18, representing a 38.89% negative surprise. Revenue in the quarter reached $171.9 million, short of the anticipated $180.8 million, a 4.92% miss.
Over the last twelve months the company recorded a revenue decline of 1.76% and reported negative earnings per share of -$1.68, figures consistent with the pattern of underperformance Canaccord highlighted in its downgrade rationale.
Market and investor implications
Analysts and investors will likely consider Canaccord's change in tone and the recent quarterly misses when assessing the company's near-term prospects. The downgrade reflects concerns about top-line growth, margin pressure from tariffs and the macro environment, and the limited evidence of turnaround through M&A or product innovation. No analyst upgrades were reported immediately following the earnings release, and market participants will be watching for any further updates from the company.