e.l.f. Beauty price target lowered to $135 from $165 at BofA

BofA lowered the firm’s price target on e.l.f. Beauty to $135 from $165 and keeps a Buy rating on the shares, stating that the firm remains bullish despite the stock’s recent decline. The company’s fundamentals are intact despite the stock trading down over 25% since the end of August, which BofA attributes primarily to impacts from a rising rate environment and growth stocks being under pressure to continue to outperform on year-over-year metrics despite difficult comps. However, the firm believes a premium multiple is warranted as the company is still in a high growth phase and continues to diversify its portfolio and customer base.