Dara Mohsenian, an analyst from Morgan Stanley, maintained the Buy rating on e.l.f. Beauty. The associated price target remains the same with $170.00.
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Dara Mohsenian has given his Buy rating due to a combination of factors including e.l.f. Beauty’s strong financial performance and promising growth prospects. The recent 8-K filing highlighted robust margins for the rhode brand, with gross margins and operating margins significantly exceeding those of e.l.f. Beauty’s own results. Despite a weaker-than-expected revenue in the June quarter, the overall financial health and margin strength of the rhode brand remain compelling.
Additionally, the record-breaking launch of rhode at Sephora, which outperformed previous brand launches, underscores the brand’s strong market presence and potential for future growth. The impressive sales figures and the influx of new customers to both Sephora and the rhode brand further support a positive outlook. Furthermore, e.l.f. Beauty’s US scanner data shows a reacceleration in sales growth, reinforcing confidence in the company’s ability to sustain its upward trajectory. These factors collectively justify the Buy rating for e.l.f. Beauty’s stock.
In another report released on October 10, J.P. Morgan also maintained a Buy rating on the stock with a $168.00 price target.