Analyst Anna Lizzul from Bank of America Securities maintained a Buy rating on e.l.f. Beauty and keeping the price target at $135.00.
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Anna Lizzul has given her Buy rating due to a combination of factors including e.l.f. Beauty’s expected sales growth and strategic initiatives. The company anticipates net sales growth to surpass the 9% rate seen in the first fiscal quarter, with additional contributions from the Rhode acquisition. Despite facing higher tariff costs impacting the EBITDA margin, e.l.f. Beauty is projected to achieve a 24% sales growth in the second fiscal quarter, supported by better-than-expected elasticity in profits.
Furthermore, e.l.f. Beauty’s focus on innovation and marketing is expected to drive sales in the fall, with brand awareness initiatives and new product launches enhancing its market position. The company also sees potential for increased distribution, particularly with replenishment orders following the Rhode launch. Additionally, e.l.f. Beauty’s strong balance sheet and strategic approach to acquisitions, aiming for profitable and complementary additions, further underpin the positive outlook. These factors collectively support Anna Lizzul’s Buy rating and the price objective of $135.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $137.00 price target.
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.