Anna Lizzul, an analyst from Bank of America Securities, reiterated the Buy rating on e.l.f. Beauty (ELF – Research Report). The associated price target was raised to $113.00.
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Anna Lizzul has given her Buy rating due to a combination of factors that highlight e.l.f. Beauty’s strategic growth potential. The acquisition of Hailey Bieber’s Rhode brand presents significant distribution opportunities as it expands into major retailers like Sephora in the US, Canada, and the UK. This move is expected to enhance e.l.f. Beauty’s gross and EBITDA margins, providing room for increased marketing investments and strengthening its connection with Gen Z consumers who are drawn to prestige-level products.
Moreover, e.l.f. Beauty is experiencing positive consumption momentum, with recent trends outperforming previous quarters and the broader category. The company is also seeing improvements in gross margin due to price adjustments, cost savings, and supplier concessions. Despite not providing initial F26 guidance due to a volatile tariff environment, the company’s conservative approach to guidance aligns with its historical practices. Additionally, e.l.f. Beauty’s recent financial performance, including surpassing FQ4 expectations and expanding shelf space globally, supports the raised price objective of $113, reflecting confidence in its continued growth and portfolio diversification.
Based on the recent corporate insider activity of 59 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.