In a report released yesterday, Dara Mohsenian from Morgan Stanley maintained a Hold rating on e.l.f. Beauty (ELF – Research Report), with a price target of $105.00.
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Dara Mohsenian has given his Hold rating due to a combination of factors observed in e.l.f. Beauty’s recent performance metrics. The company’s US Nielsen scanner data indicated a year-over-year sales growth of 18.4% in the latest two weeks ending June 14, with a 15.0% increase in the most recent week. Although this reflects strong growth, it also shows a sequential slowdown compared to previous weeks, which presents a tougher comparison.
Additionally, while the four-week period showed a 21.9% increase, surpassing the prior four-week period’s 15.3% growth, the two-year average growth rates have shown some fluctuation. The market share for e.l.f. Beauty has increased, but the velocity remained relatively flat, with a slight decline of 0.1% year-over-year in the latest four-week period. These mixed signals in growth and market dynamics likely contributed to the Hold rating, suggesting that while the company is performing well, there are factors that warrant a cautious approach for investors.
ELF’s price has also changed slightly for the past six months – from $131.910 to $121.870, which is a -7.61% drop .