BofA lowered the firm’s price target on Elf Beauty to $190 from $230 and keeps a Buy rating on the shares after having hosted CEO Tarang Amin for an investor meeting in New York City. While the firm acknowledges that the extent of Elf’s earnings beats compared to guidance is likely coming down, it does not see “cause for concern on current estimates,” the analyst tells investors. The firm revised its valuation due to the likelihood of lower earnings beats moving forward, but believes a premium multiple is warranted as the company is still in a high growth phase and continues to diversify across color cosmetics/skincare and gain brand awareness, the analyst added.
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