Truist starts Oddity at Hold, sees valuation at high end of comp goup

Truist analyst Youssef Squali initiated coverage of Oddity with a Hold rating and $54 price target. The company is a key disruptor in the Beauty and Wellness industry with a $600B total addresssable market and offers two powerful DTC brands, IL Makiage and SpoiledChild, the analyst tells investors in a research note. Truist also believes that Oddity will compound top line growth at about 20% with 20% adjusted EBITDA margins for several years, though the firm notes that the stock is trading at the high-end of its comp group.