Cautious Optimism: e.l.f. Beauty’s Hold Rating Amid Growth and Uncertainties

Analyst Dara Mohsenian of Morgan Stanley maintained a Hold rating on e.l.f. Beauty (ELF – Research Report), boosting the price target to $105.00.

Dara Mohsenian has given his Hold rating due to a combination of factors that influence e.l.f. Beauty’s stock performance. The recent acquisition of the rhode skincare brand, founded by Hailey Bieber, is seen as a positive move, potentially boosting short-term growth. However, there is uncertainty about the long-term sustainability of this growth, which tempers enthusiasm.
Additionally, while the company reported better-than-expected fourth-quarter results and favorable news regarding tariffs, there remains volatility in its base business. The decision to raise the price target reflects optimism about future revenue growth and potential tariff reductions, yet the inherent risks and uncertainties lead to a cautious Hold rating. Overall, while the outlook is promising, the combination of positive developments and underlying uncertainties justifies the Hold position.

In another report released on May 21, UBS also maintained a Hold rating on the stock with a $84.00 price target.