Honest Company initiated with a Buy at Lake Street

Lake Street initiated coverage of Honest Company with a Buy rating and $6 price target. Honest Company is well-positioned to benefit from consumers’ continued focus on clean/natural products and is currently under-penetrated in a total addressable market that is over $40B and has the opportunity to continue to grow with existing customers, add new customers, and sell adjacent products, the analyst tells investors in a research note. As the company executes and shows the sustainability of the business model, Lake Street thinks the multiple can continue to expand.