Analyst Dara Mohsenian from Morgan Stanley maintained a Hold rating on e.l.f. Beauty and increased the price target to $114.00 from $105.00.
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Dara Mohsenian has given his Hold rating due to a combination of factors impacting e.l.f. Beauty’s stock. The company has been experiencing significant volatility, particularly in its base business operations and tariff-driven cost fluctuations. Additionally, the recent acquisition of Rhode has introduced further uncertainty, with limited information provided on its revenue contribution and expenses.
Despite these challenges, there are positive aspects such as the potential long-term earnings accretion from the Rhode acquisition and the benefits of recent pricing strategies. However, the lack of clear guidance from e.l.f. Beauty and the overall uncertainty in the market have led Mohsenian to adopt a cautious stance, resulting in a Hold rating. This reflects a balance between the potential upside and the risks associated with the company’s current situation.
Based on the recent corporate insider activity of 63 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ELF in relation to earlier this year.