Honest Company price target raised to $7 from $6.50 at B. Riley

B. Riley raised the firm’s price target on Honest Company (HNST) to $7 from $6.50 and keeps a Buy rating on the shares. Honest Company posted a “down-the-line” beat for Q3, with adjusted EBITDA that was more than double the consensus estimate, and raised guidance, the analyst tells investors in a research note. B. Riley is encouraged by retail consumption outperformance vs. the category, and the firm sees significant runway for growth as the brand continues to expand distribution, increase household penetration, and consumer affinity for clean/natural products grows.