Oddity initiated with an Equal Weight at Morgan Stanley

Morgan Stanley initiated coverage of Oddity (ODD) with an Equal Weight rating and $57 price target. The analyst sees strong long-term revenue growth prospects for the company but believes the stock’s valuation already reflects the positives. In addition, Oddity has less long-term visibility compared to peers due to its short history, reliance on technology and two brands, and more limited e-commerce disclosures, the analyst tells investors in a research note. The firm prefers e.l.f. Beauty (ELF) as its favorite SMID cap idea and best way to play the beauty sector.