Beauty Stocks Like Coty, Estee Lauder Are Flying, But This Analyst Has Sights Set On The 'Best Performer' - e.l.f. Beauty (NYSE:ELF)

  • Morgan Stanley analyst Dara Mohsenian reiterated an Overweight rating on the shares of elf Beauty Inc ELF and raised the price target to $46 from $42, implying a 14% upside.
  • ELF remains the analyst’s preferred SMID cap pick, with recent U.S. scanner data confirming potential fundamental upside near-term and driving higher estimates/price target.
  • Also ReadElf Beauty Outperforms Peers: Expect 16% Sales Growth In Fiscal 2023, Analyst Says
  • ELF momentum is being driven by its market share gains, which are accelerating as it implemented pricing with limited resulting volume demand elasticity, and as lower-price portfolio benefits from recent consumer trade-down, said Mohsenian.
  • The company’s share gains, the analyst added, should also drive longer-term momentum with a virtuous cycle as retailers allocate more shelf space to ELF, driving sales.
  • The analyst considers topline upside should also allow for continued reinvestment in marketing, further supporting share gains.
  • Mass beauty category growth continues to recover post-COVID, specified Mohsenian.
  • Peer Coty Inc. COTY recorded 10% growth in its Q4 and predicted FY23 to be a year of continued expansion, in-line with medium-term growth targets.
  • Also ReadCoty Aims To Double Skincare Sales By FY25
  • Also, Goldman Sachs analyst Jason English upgraded Estee Lauder Companies, Inc. EL from Neutral to Buy and raised the price target from $298 to $303.
  • Price Action: ELF shares are trading higher by 1.72% at $40.20 on the last check Wednesday.
  • Photo Via Company

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