Honest Company price target raised to $7 from $6 at Telsey Advisory

Telsey Advisory raised the firm’s price target on Honest Company (HNST) to $7 from $6 and keeps a Market Perform rating on the shares. While the departure of CFO Dave Loretta comes as “somewhat of a surprise,” Loretta is leaving the company knowing it is in a stronger place financially than when he joined, the analyst tells investors. Additionally, the firm believes the company will work to find a successor with a shared commitment to the brand’s environmental, social, and governance focus and believe investors will appreciate management’s transparency and guidance reaffirmation. However, the business is in the early days of its transformation efforts and the profitability potential of its model remains uncertain, leading the firm to maintain its Market Perform rating.