Analyst Dara Mohsenian of Morgan Stanley maintained a Hold rating on e.l.f. Beauty, retaining the price target of $105.00.
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Dara Mohsenian has given his Hold rating due to a combination of factors observed in the recent performance of e.l.f. Beauty’s stock. The company’s US Nielsen scanner data showed a year-over-year sales growth of 8.3% in the latest two weeks ending June 28, with a 6.5% increase in the most recent week. However, this growth represents a sequential slowdown from previous periods, indicating a deceleration in Total Distribution Points (TDP) growth.
Additionally, while e.l.f. Beauty’s market share increased slightly, the velocity of sales experienced a slight decline, with a year-over-year decrease of 1.0% in the latest four-week period. The two-year average growth also showed a slight dip compared to previous periods. These mixed signals, including the deceleration in sales growth and TDP, likely contributed to the Hold rating, suggesting that while the company is still performing well, there are signs of slowing momentum that warrant a cautious approach.