Brian Tanquilut, an analyst from Jefferies, has initiated a new Buy rating on ODDITY Tech Ltd. Class A (ODD).
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Brian Tanquilut has given his Buy rating due to a combination of factors that highlight ODDITY Tech Ltd.’s strong growth potential and strategic execution. The company has demonstrated a robust ability to grow its brands organically, as evidenced by its successful launches of IL MAKIAGE and SpoiledChild, which have achieved significant revenue and profitability milestones. This track record instills confidence in the upcoming launch of their third brand, which is expected to further drive growth and expand their market presence, particularly in the medical-grade skincare sector.
Moreover, the company’s financial outlook is promising, with expectations of maintaining a 20% revenue growth and margins in the same range, suggesting that the stock is undervalued compared to its growth potential. The conservative guidance-setting strategy of management, coupled with a solid balance sheet and free cash flow, positions ODDITY Tech Ltd. to continue delivering earnings beats that could drive stock performance. The current valuation, especially after a recent pullback, presents a compelling opportunity for investors, with room for upside as the company continues to execute its strategic plans.
Tanquilut covers the Healthcare sector, focusing on stocks such as Chemed, Community Health, and CVS Health. According to TipRanks, Tanquilut has an average return of 4.9% and a 52.65% success rate on recommended stocks.
In another report released yesterday, Citizens JMP also reiterated a Buy rating on the stock with a $80.00 price target.