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Cautious Outlook for e.l.f. Beauty Amidst Declining Sales Momentum and Flat Market Share

Cautious Outlook for e.l.f. Beauty Amidst Declining Sales Momentum and Flat Market Share

Analyst Dara Mohsenian of Morgan Stanley maintained a Hold rating on e.l.f. Beauty (ELFResearch Report), retaining the price target of $70.00.

Dara Mohsenian’s rating is based on a combination of factors, primarily focusing on the recent performance trends of e.l.f. Beauty’s sales data. The company’s US scanner sales, including those from Amazon, have shown a decline in growth over the latest weeks compared to previous periods. This trend indicates a slowdown in sales momentum, which is a concern for potential investors.
Additionally, e.l.f. Beauty’s market share has remained relatively flat, lacking the significant gains seen in earlier periods. The velocity of sales has also decreased, marking a downward trend for the fifth consecutive period. These factors collectively suggest a cautious outlook, leading to the Hold rating as investors may want to wait for more favorable conditions before making further investment decisions.

According to TipRanks, Mohsenian is a 5-star analyst with an average return of 7.6% and a 64.81% success rate. Mohsenian covers the Consumer Defensive sector, focusing on stocks such as Colgate-Palmolive, Coca-Cola, and PepsiCo.

In another report released on February 19, D.A. Davidson also maintained a Hold rating on the stock with a $80.00 price target.

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