I have been looking at this stock for a long time, and I believe I am not too late.
2Wk·
Joining the party 🚢
2Wk·
Growth potential through rhode: Morgan Stanley raises price target for e.l.f. Beauty to 170 dollars
For me, one of the fastest growing companies in the consumer goods sector.
That is why I remain invested.
Investing.com - Morgan Stanley on Wednesday raised its price target on shares of e.l.f. Beauty (NYSE:ELF) from $134.00 to $170.00 and reiterated its "Overweight" rating. According to data from InvestingPro, the new target marks the highest analyst value, with a consensus range of 128 to 170 dollars.
The investment house cited the upside potential of the skin care line rhode and solid scanner data for e.l.f.'s core business as the main reasons for the upgrade. In particular, the strong performance following rhode's debut at Sephora was highlighted.
The analysts stated that they had slightly increased their earnings per share forecasts, mainly due to the expected stronger growth of the rhode product line.
Morgan Stanley's long-term outlook remains well above consensus estimates. For the 2027 financial year, the financial institution is forecasting EBITDA that is 19% higher than Wall Street's expectations.
Despite the optimistic long-term outlook, the company left its forecasts for the current second financial quarter unchanged. The reason given was that rhode's expected upside potential would be offset by more conservative assumptions for the e.l.f. core business.
Recently, other important developments relating to e.l.f. Beauty also attracted attention. BofA Securities raised its price target for e.l.f. Beauty to 160 dollars with an unchanged "buy" recommendation. The reasons given were the strong start of the recently acquired Rhode brand and an adjustment of the sales growth forecast for the 2026 financial year to 26%.
Jefferies also confirmed its Buy recommendation with a price target of 135 dollars and pointed to Rhode's impressive debut at Sephora, which generated sales of over 10 million dollars within two days. Deutsche Bank downgraded e.l.f. Beauty from "buy" to "hold", although it raised its target price to 128 dollars. This was justified by the 25% increase in the share price since the beginning of August. Morgan Stanley, on the other hand, had previously upgraded the share to "Overweight" and raised the target price to 134 dollars, as the bank saw the current market conditions as an attractive entry point for investors. In addition, e.l.f. Cosmetics launched a unique campaign called "Animal Intelligence" with animal influencers to support animal welfare. The campaign encourages fans to submit photos of their pets for a chance to win prizes, including gift packs from Chewy.com. These developments underline the dynamic environment in which e.l.f. Beauty operates in, as well as the company's strategic initiatives.
55