e.l.f. Beauty’s Strong Performance and Strategic Acquisitions Drive Buy Rating

e.l.f. Beauty (ELF – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Ashley Helgans from Jefferies maintained a Buy rating on the stock and has a $115.00 price target.

Ashley Helgans has given his Buy rating due to a combination of factors including e.l.f. Beauty’s strong financial performance and strategic acquisitions. The company exceeded expectations in sales, EBITDA, and EPS for the recent quarter, with sales growing by 4% year-over-year, driven by increased unit volume across all channels and regions. Additionally, the gross margin expanded, benefiting from favorable foreign exchange rates and reduced transportation costs.
A significant factor in the Buy rating is e.l.f. Beauty’s acquisition of Rhode, a prestige skincare and color cosmetics brand founded by Hailey Bieber. This acquisition is seen as a positive addition to e.l.f.’s portfolio, expected to contribute to top-line growth and earnings. Despite the uncertainty surrounding tariffs, the company is taking proactive measures by adjusting prices and optimizing its supply chain, which is anticipated to mitigate potential cost impacts. These strategic moves, along with the company’s robust performance, underpin the positive outlook and the Buy rating.

In another report released today, Bank of America Securities also reiterated a Buy rating on the stock with a $113.00 price target.