Anna Lizzul, an analyst from Bank of America Securities, reiterated the Buy rating on e.l.f. Beauty. The associated price target was lowered to $93.00.
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Anna Lizzul has given his Buy rating due to a combination of factors including ELF’s recent share price weakness, which has left the stock trading at what she views as an undemanding multiple versus its long‑term earnings potential. She attributes much of the pullback to a risk‑off macro environment and investor concerns around Middle East tensions and freight costs, which she believes are largely sentiment‑driven with limited fundamental impact given ELF’s minimal regional exposure and stable cost trends to date.
Anna Lizzul’s rating is based on her expectation that core ELF revenue should still grow at a healthy mid‑single‑digit pace, supported by steady global consumption and prior shelf space gains, while the Rhode brand adds a faster‑growing incremental profit stream. Her updated DCF supports a lower but still compelling $93 price objective, reflecting higher discount-rate assumptions yet still implying a premium multiple justified by double‑digit top‑line growth, an expanding portfolio across categories and channels, and the potential for valuation recovery as macro and operational headwinds normalize.
In another report released yesterday, TipRanks – PerPlexity also reiterated a Buy rating on the stock with a $69.00 price target.
Based on the recent corporate insider activity of 75 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ELF in relation to earlier this year.