In a report released yesterday, Dara Mohsenian from Morgan Stanley maintained a Buy rating on e.l.f. Beauty, with a price target of $121.00.
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Dara Mohsenian has given his Buy rating due to a combination of factors that highlight e.l.f. Beauty’s strong market performance and growth potential. The company’s recent U.S. scanner data indicates a robust year-over-year sales growth of 15.3% in the latest two weeks, with a 13.8% increase in the most recent week. This growth is supported by a solid increase in the weighted average pricing of their cosmetics, which rose by 15.7% in the same period.
Additionally, e.l.f. Beauty has demonstrated impressive market share gains, with an 85 basis points increase year-over-year in the last week. The company’s velocity and total distribution points (TDP) have also shown positive trends, with velocity up by 11.8% year-over-year in the latest four-week period. These factors, combined with a consistent two-year average sales growth, suggest a strong competitive position and potential for continued success in the market.
In another report released on November 17, Goldman Sachs also reiterated a Buy rating on the stock with a $135.00 price target.