Cricut: Sell Rating Reiterated as Structural Headwinds Persist; $3.10 Price Target Unchanged

In a report released today, Erik Woodring from Morgan Stanley maintained a Sell rating on Cricut Inc, with a price target of $3.10.

Erik Woodring has given his Sell rating due to a combination of factors tied to Cricut’s limited visibility into a durable recovery and persistent structural headwinds. While first‑quarter earnings beat profit expectations on the back of unusually strong gross margins helped by foreign exchange and lower tariff costs, revenue still missed forecasts and the upside appears driven by elements that may not repeat.

Management continues to highlight a second‑half rebound and expresses confidence for 2026, yet Woodring sees little concrete evidence that end‑market demand, customer spending patterns, or competitive dynamics are improving enough to sustain growth. Ongoing issues such as longer product replacement cycles, pricing pressure from lower‑priced machines, and intense competition in accessories and materials constrain the earnings outlook, so he reiterates his Underweight/Sell stance with an unchanged $3.10 price target despite the potential one‑time benefit from tariff refunds.

In another report released today, Barclays also maintained a Sell rating on the stock with a $4.00 price target.