e.l.f. Beauty, the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Oliver Chen from TD Cowen maintained a Buy rating on the stock and has a $110.00 price target.
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Oliver Chen has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for e.l.f. Beauty. Despite a cautious outlook with the company’s guidance for FY25 being lower than expected, there are positive indicators such as the strong year-to-date consumption growth that outpaces the category by more than three times. The company’s innovation pipeline and engagement with Gen-Z, digital platforms, and community are seen as strong points that contribute to its long-term potential.
While the core e.l.f. brand faces normalization and modest growth in the near term, the company is expected to see a rebound in shipments and revenue growth in the latter half of the year. The management’s strategic reinvestment and marketing efforts, particularly in the second half, are anticipated to support future growth and awareness. Although the stock may experience short-term valuation challenges, sustained consumption and market share gains are expected to drive momentum into FY26, justifying the Buy rating with a price target adjustment to $110.
In another report released today, Canaccord Genuity also maintained a Buy rating on the stock with a $136.00 price target.
Based on the recent corporate insider activity of 76 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ELF in relation to earlier this year.