Analyst Dara Mohsenian from Morgan Stanley maintained a Hold rating on e.l.f. Beauty and keeping the price target at $105.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Dara Mohsenian has given his Hold rating due to a combination of factors related to e.l.f. Beauty’s recent performance metrics. The company’s US sales growth, as measured by Nielsen scanner data, showed a positive trend with a 12.6% year-over-year increase in the latest two weeks and a 16.9% rise in the most recent week. However, this growth appears to be decelerating when compared to previous periods, as the four-week growth rate of 10.5% was notably lower than the 21.9% observed in the prior four-week period.
Additionally, while there was an acceleration in total distribution points, e.l.f. Beauty’s market share experienced a decline, with a year-over-year drop of 41 basis points in the last week. The company’s velocity also showed a slight decrease over the latest four-week period. These mixed signals, with solid sales growth but declining market share and velocity, contribute to the Hold rating, suggesting that while the company is performing well, there are concerns about sustaining this momentum.
In another report released on July 17, UBS also maintained a Hold rating on the stock with a $120.00 price target.
Based on the recent corporate insider activity of 65 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.