Oliver Chen, an analyst from TD Cowen, maintained the Buy rating on e.l.f. Beauty (ELF – Research Report). The associated price target was lowered to $77.00.
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Oliver Chen’s rating is based on the expectation of a recovery in e.l.f. Beauty’s financial performance despite recent challenges. The company experienced a lower-than-expected revenue growth guidance for the fourth quarter of 2025, which was attributed to a combination of factors including currency fluctuations and a strategic decision not to run a national Super Bowl advertisement. However, Chen notes that these challenges are likely temporary and that the company’s guidance may be conservative, with a focus on the anticipated recovery in sales and new product launches.
Chen believes that the attractiveness of e.l.f. Beauty’s valuation, combined with its growth potential, justifies a Buy rating. The company’s price-to-earnings ratio is currently more appealing compared to its three-year average, which, along with its potential for low teens growth in fiscal year 2026, positions it favorably for investors. Chen also highlights the potential for a reversal in mass cosmetics trends as social media engagement and innovation initiatives increase, suggesting that the market may look beyond short-term headwinds toward longer-term opportunities.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $102.00 price target.