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Investing.com - BofA Securities raised its price target on e.l.f. Beauty (NYSE:ELF) to $135.00 from $113.00 on Friday, while maintaining a Buy rating on the cosmetics company’s stock. The company, currently valued at $6.7 billion, has demonstrated impressive growth with revenue increasing 28.28% over the last twelve months.According to InvestingPro data, analyst price targets for ELF currently range from $95 to $150, reflecting varied outlooks on the company’s growth potential.
The firm lowered its fiscal first-quarter sales growth estimate to 12% from 15% previously, citing early quarter softness observed in scanner data. BofA also reduced its gross margin forecast to 69% from 70% due to tariff impacts not yet offset by upcoming price increases. Notably, the company has maintained strong gross margins of 71.24% over the last twelve months, demonstrating consistent operational efficiency.
BofA Securities expects non-marketing SG&A percentage growth to exceed sales growth rate in the fiscal first quarter. These adjustments led the firm to lower its FQ1 EBITDA estimate significantly to $69 million from $90 million previously.
The firm anticipates potential sales acceleration following the first quarter and expects gross margin improvement from price increases that will take effect on August 1. Additional factors supporting margin recovery include cost savings and potential supplier concessions.
Despite the near-term challenges, BofA’s higher price target reflects confidence in e.l.f. Beauty’s longer-term prospects as the company implements strategic pricing and cost management initiatives to address current pressures. InvestingPro’s analysis shows the company maintains excellent financial health with an overall score of "GREAT," supported by strong profitability metrics and solid growth potential. Get access to 18 additional ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.
In other recent news, e.l.f. Beauty has been the subject of several analyst updates and strategic developments. Jefferies raised its price target for the company to $150, highlighting the acquisition of skincare brand Rhode as a significant growth catalyst. The firm noted that the acquisition could positively impact e.l.f. Beauty’s earnings per share by fiscal year 2026. Similarly, Raymond (NSE:RYMD) James increased their price target to $130, emphasizing the company’s plans for domestic and international expansion and the expected benefits of the Rhode acquisition. Truist Securities also raised their price target significantly to $125, reflecting revised sales and EBITDA estimates for the upcoming fiscal years.
Deutsche Bank (ETR:DBKGn), while raising the price target to $96, maintained a Hold rating, acknowledging the company’s strong fourth-quarter results but noting uncertainties in the operating environment. The acquisition of Rhode was described as potentially accretive but with some long-term integration questions. Meanwhile, TD Cowen increased its price target to $130, citing the strategic importance of the Rhode acquisition for e.l.f. Beauty’s growth trajectory. The firm remains optimistic about the company’s ability to capture market share in both mass and prestige beauty sectors. These recent developments indicate a period of significant strategic activity for e.l.f. Beauty, with analysts generally expressing confidence in the company’s future prospects.
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