Olaplex: Early Signs of Turnaround but Back-Half Execution Risk Keeps Rating at Hold

In a report released today, Jonna Kim from TD Cowen maintained a Hold rating on Olaplex Holdings, with a price target of $1.50.

Jonna Kim has given his Hold rating due to a combination of factors, including evidence that Olaplex is stabilizing but not yet clearly re-accelerating. The company’s recent quarter showed a strong EBITDA beat while sales merely met expectations, and full‑year guidance points to growth skewed to the back half, which adds execution risk despite management’s confidence that demand will build as new initiatives roll out.

At the same time, brand health metrics and digital traffic indicate improving consumer engagement, and early signs of better sell‑through in key accounts suggest the turnaround strategy is starting to gain traction. Kim views the enhanced innovation pipeline and more sophisticated marketing as positive, but given the gradual nature of the recovery, elevated expectations after takeover speculation, and reliance on second‑half improvement, she sees a more balanced risk‑reward profile that supports maintaining a Hold rather than moving to a more aggressive rating.

In another report released today, TipRanks – PerPlexity also reiterated a Hold rating on the stock with a $1.50 price target.

Based on the recent corporate insider activity of 21 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 OLPX in relation to earlier this year.