Analyst Dara Mohsenian from Morgan Stanley maintained a Hold rating on ODDITY Tech Ltd. Class A and decreased the price target to $49.00 from $61.00.
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Dara Mohsenian has given his Hold rating due to a combination of factors influencing ODDITY Tech Ltd. Class A. The company showcased impressive third-quarter results with a 24% year-over-year revenue growth and a slight increase in FY25 guidance, despite a challenging consumer environment and concerns over US credit card data trends. However, the launch of METHODIQ, their new telehealth platform, introduces uncertainty regarding its execution and the sustainability of US market trends, which currently make up 83% of their sales mix.
While ODDITY Tech Ltd. has demonstrated strong historical growth and potential upside with the METHODIQ launch, the uncertainties surrounding its execution and the broader US market environment have led to a more cautious outlook. The valuation basis has been adjusted to align with high-growth peers, resulting in a price target reduction from $61 to $49. This reflects the potential risks and the need for careful monitoring of the company’s strategic initiatives in the coming periods.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $64.00 price target.