Elf Beauty downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Elf Beauty (ELF) to Equal Weight from Overweight with a price target of $67, down from $80. The company’s market share losses in its core cosmetics business are concerning and “poised to worsen” as the summer of 2025 pricing cycles, the analyst tells investors in a research note. The firm believes Elf is seeing “durable pressure” from smaller brands as the cosmetics category fragments. As a result, Elf’s compressed valuation looks “reasonable” even after stock’s underperformance, contends Morgan Stanley.