Elf Beauty downgraded to Neutral from Buy at UBS

UBS analyst Peter Grom downgraded Elf Beauty (ELF) to Neutral from Buy with a price target of $74, down from $158. The shares are down nearly 30% over the last month as a result of a sharp deceleration in U.S. tracked trends, the analyst tells investors in a research note. The firm says Elf’s the Q3 results and updated outlook imply that this deceleration in growth may continue, with the updated outlook implying that growth could move into the single-digit percent range for the first time in four years. Given the uncertainty on the growth trajectory from here, UBS thinks recent historical valuations may not be relevant, as some bulls may argue.