BofA raised the firm’s price target on Elf Beauty (ELF) to $113 from $95 and keeps a Buy rating on the shares, citing higher estimates after earnings and the Rhode acquisition. The firm is positive on the acquisition of Rhode for “several reasons,” including that as an entirely DTC brand, Elf has significant distribution opportunity; Rhode is expected to be accretive to gross margin, EBITDA margin, and earnings; and the deal tightens Elf’s relationship with Gen Z consumers who seek out prestige level products, the analyst tells investors.
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