DA Davidson analyst Linda Bolton Weiser raised the firm’s price target on e.l.f. Beauty to $176 from $163 and keeps a Buy rating on the shares. The analyst believes that the company’s $355M Naturium deal was a “real good acquisition” and should double its presence in skincare to about 18% of retail sales. Naturium is expected to generate sales of $90M and EBITDA of $17M in the 12 months ending March 31, 2024, and the purchase price implies a multiple of 3.9-times expected sales and 20.9-times EBITDA, which is “not outrageous” for a rapidly growing and very profitable skincare brand, the firm tells investors in a research note.
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