Morgan Stanley analyst Dara Mohsenian maintained a Hold rating on e.l.f. Beauty (ELF – Research Report) yesterday and set a price target of $70.00.
Dara Mohsenian has given his Hold rating due to a combination of factors influencing e.l.f. Beauty’s current market position. The company’s recent US scanner sales growth, including Amazon 1P, showed an increase of 3.9% year-over-year in the last two weeks and 9.7% in the most recent week. This growth is a positive indicator, but it follows a period of mixed results, with prior weeks showing lower growth rates and even a decline.
Additionally, while e.l.f. Beauty’s market share has grown year-over-year, the gains are not as significant as those seen in previous periods. The company’s sales velocity also experienced a decline of 8.4% over the past four weeks. These mixed performance indicators suggest a cautious outlook, leading to the Hold rating as the stock’s future growth potential remains uncertain.
Mohsenian covers the Consumer Defensive sector, focusing on stocks such as Coca-Cola, Colgate-Palmolive, and Keurig Dr Pepper. According to TipRanks, Mohsenian has an average return of 7.6% and a 64.74% success rate on recommended stocks.
In another report released yesterday, D.A. Davidson also maintained a Hold rating on the stock with a $64.00 price target.