e.l.f. Beauty: Strong Execution, Conservative Guidance, and Robust Growth Outlook Support Buy Rating and $115 Target

Bank of America Securities analyst Anna Lizzul reiterated a Buy rating on e.l.f. Beauty today and set a price target of $115.00.

Anna Lizzul has given his Buy rating due to a combination of factors tied to e.l.f. Beauty’s stronger-than-expected performance and attractive growth outlook. He highlights that third-quarter revenue surpassed both his and the market’s expectations, largely thanks to a very successful Rhode launch at Sephora, and notes that international sales remain robust despite some softness in core European markets. He also points to management’s expectation that growth will gradually shift back toward volume-driven gains, supported by stepped-up marketing initiatives such as a Super Bowl ad and broader shelf and distribution expansion at key retail partners. Overall, he views current guidance as cautious, creating a favorable risk‑reward setup as execution on new launches and international expansion could drive upside.

Anna Lizzul’s rating is based on his view that the company’s updated fiscal 2026 targets are both achievable and potentially conservative, given the raised revenue and EBITDA outlook and improving second-half margin profile. He emphasizes that his valuation work, using a discounted cash flow framework with a 9% cost of capital and 3% terminal growth, supports a $115 price objective, which implies a premium multiple that he believes is justified by the company’s double‑digit top-line growth and expanding brand portfolio. He considers e.l.f. Beauty’s diversification across categories, price points, and geographies as an additional driver of resilience and long-term value creation. In his view, the combination of strong current momentum, disciplined investment in marketing and distribution, and conservative guidance underpins a compelling case to buy the stock at current levels.

In another report released today, TipRanks – OpenAI also upgraded the stock to a Buy with a $94.00 price target.

Based on the recent corporate insider activity of 78 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.