In a report released today, Anna Lizzul from Bank of America Securities reiterated e.l.f. Beauty (ELF – Research Report) to a Buy, with a price target of $135.00.
Anna Lizzul of Bank of America Securities has given e.l.f. Beauty’s stock (ELF) a Buy rating due to a combination of factors. Despite a recent decline in the stock’s value, attributed to the impact of a rising rate environment and pressure on growth stocks, Lizzul remains optimistic about ELF’s future. The expectation is for ELF to double its market share in color cosmetics in the next four to five years, expand ELF Skin, add distribution for Naturium, and build an international presence. The stock’s weakness is seen as temporary given ELF’s consistent quarterly results outpacing tracked channel sales due to untracked channels significantly outperforming.
ELF’s beauty squad loyalty program, with almost 4 million members, is responsible for over 80% of ELF’s sales on its own website and has seen a 25% increase in growth year on year. For the latest 12 weeks ending 9/23/23, ELF’s tracked channel sales increased by 62%. Lizzul maintains an estimate of 70% year on year sales growth for F2Q24 despite concerns about Nielsen data. Additionally, ELF continues to expand its cosmetics, skincare, and international presence, with strong growth in the UK and Canada due to strategic retail partnerships. The Buy rating is reiterated with a price objective of $135, justified by a DCF analysis implying a 28x CY24e EV/EBITDA multiple, which Lizzul believes is warranted given the company’s high growth phase and ongoing diversification of its portfolio and customer base.
In another report released on October 12, J.P. Morgan also maintained a Buy rating on the stock with a $139.00 price target.
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e.l.f. Beauty (ELF) Company Description:
e.l.f. Beauty, Inc. is a holding company, which engages in the provision of cosmetic and skin-care product. It operates through the U.S and International geographical segments. The company focuses on the e-commerce, national retailers, and international business channels. Its product portfolio includes eyes, lips, face, kits, tools, and skin care categories. The company was founded in 2004 and is headquartered in Oakland, CA.
Read More on ELF:
- e.l.f. Beauty price target lowered to $139 from $150 at JPMorgan
- e.l.f. Beauty price target lowered to $152 from $164 at Piper Sandler
- e.l.f. Beauty upgraded, AutoZone downgraded: Wall Street’s top analyst calls
- e.l.f. Beauty upgraded to Buy at Jefferies on valuation
- e.l.f. Beauty upgraded to Buy from Hold at Jefferies
