Morgan Stanley analyst Dara Mohsenian maintained a Buy rating on e.l.f. Beauty today and set a price target of $121.00.
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Dara Mohsenian has given his Buy rating due to a combination of factors despite some recent challenges faced by e.l.f. Beauty. The company experienced a revenue shortfall in the second quarter, primarily due to shipment timing issues and a tough comparison to the previous year’s distribution expansion. However, the underlying consumer demand remains robust, with healthy growth in U.S. consumer takeaway.
Mohsenian acknowledges that while the guidance for the second half of the year was below expectations, e.l.f. Beauty has a history of conservative guidance, which often results in better-than-expected outcomes. Additionally, the company is expected to resume strong double-digit topline growth in the fiscal year 2027 as shipment variances stabilize and organic growth initiatives take effect. Despite the current lack of clarity and a volatile retail environment, the long-term growth potential of e.l.f. Beauty remains solid, justifying the Buy rating.
In another report released today, Robert W. Baird also maintained a Buy rating on the stock with a $125.00 price target.