Elf Beauty initiated with a Hold at Deutsche Bank

Deutsche Bank initiated coverage of Elf Beauty (ELF) with a Hold rating and $133 price target representing 3% downside to recent trading levels. The firm sees Elf’s current valuation as “fairly full,” while acknowledging ongoing sales and earnings growth opportunities across color cosmetics, skin care, and overseas. While the company’s opportunities ahead are attractive and likely sizable, there is risk in Elf being primarily dependent on a relatively narrow demographic and facing perennially stiff competition, the analyst tells investors in a research note.