e.l.f. Beauty downgraded to Hold from Buy at Jefferies

Jefferies analyst Ashley Helgans downgraded e.l.f. Beauty to Hold from Buy. The downgrade is based primarily on valuation, as Helgans sees the risk/reward as balanced, the analyst tells investors in a research note. Even if sales were to grow 20% with 22% EBITDA margins next year, the stock is still elevated at ~23x EV/EBITDA, inline with the historical peak and 40% above the five-year average, the analyst says.