Analyst Dara Mohsenian from Morgan Stanley maintained a Hold rating on Olaplex Holdings and decreased the price target to $1.40 from $1.75.
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Dara Mohsenian’s rating is based on Olaplex Holdings’ recent performance and future outlook. The company showed progress in its turnaround efforts with better-than-expected results in Q3, including a beat on revenue, gross profit, and adjusted EBITDA. However, some of this performance was due to timing benefits and shipment pull-forwards, alongside ongoing macroeconomic pressures and category de-stocking challenges.
Despite maintaining its full-year guidance, which suggests a conservative outlook, the company still faces revenue declines and competitive headwinds. The decision to lower the price target reflects recent multiple compressions in the market, although Olaplex’s strong margins and balance sheet support a higher valuation compared to its peers. While there are positive signs in the company’s strategic reinvestments, the Hold rating reflects the need for more consistent evidence of sustained revenue growth.
In another report released on November 7, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $1.00 price target.
Based on the recent corporate insider activity of 23 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.