Analyst Dara Mohsenian of Morgan Stanley maintained a Buy rating on e.l.f. Beauty (ELF – Research Report), retaining the price target of $153.00.
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Dara Mohsenian has given his Buy rating due to a combination of factors that suggest potential for e.l.f. Beauty’s long-term growth despite recent challenges. Mohsenian acknowledges that the company’s US scanner sales, including data from Amazon, have shown a slowdown, with recent figures reflecting weaker-than-expected performance. However, he suggests that these results were impacted by various external factors such as New Year’s timing, LA wildfires, and MLK weekend timing, which distorted the short-term sales data.
Mohsenian emphasizes the importance of looking at broader trends rather than focusing solely on weekly data. While acknowledging that e.l.f. Beauty’s recent market share growth has slowed, he points out that the company has a history of significant share gains in prior quarters. This historical performance, combined with an understanding of the external factors affecting recent data, leads him to maintain a positive outlook on e.l.f. Beauty, warranting a Buy rating.
In another report released yesterday, D.A. Davidson also maintained a Buy rating on the stock with a $170.00 price target.
Based on the recent corporate insider activity of 71 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ELF in relation to earlier this year.