Elf Beauty downgraded to Neutral from Buy at DA Davidson

DA Davidson downgraded Elf Beauty (ELF) to Neutral from Buy with a price target of $80, down from $170, following the earnings report. The firm cites uncertainty over how long the company’s sales slowdown will last for the downgrade. DA’s near-term concerns include tariffs, Elf’s higher mass beauty promotions levels, spending, and innovation “that is iterative.” The company’s EBITDA margin could stay flat at 22% and the stock’s valuation could “undergo a further protracted re-rating,” the analyst tells investors in a research note.