Olaplex Holdings downgraded at TD Cowen with turnaround seen needing time

As previously reported, TD Cowen downgraded Olaplex Holdings to Market Perform from Outperform with a price target of $4.50, down from $10. After last October’s sharp decline, the firm had been looking for signs of the business rebounding and thought Q3 was a trough, but "trends got worse and management’s FY23 guide disappointed," the analyst tells investors. The firm remain positives on the prospect of Olaplex building a lifestyle brand and the company’s patented technology as "a key differentiator," but in the near-term the business is being reset and TD Cowen believes it will likely take some time for management’s turnaround strategies to take hold.