Intel stock spikes after report of possible US government stake
On Wednesday, DA Davidson reaffirmed its Neutral stance on e.l.f. Beauty (NYSE:ELF), maintaining a price target of $75.00. Currently trading at $65.50 with a market capitalization of $3.68 billion, the company has drawn significant analyst attention. According to InvestingPro data, 18 analysts have recently revised their earnings estimates downward for the upcoming period. The firm’s analyst, Linda Weiser, provided insights into the company’s recent performance and future outlook. Weiser observed that e.l.f. Beauty’s point-of-sale (POS) figures in the U.S. tracked channels have shown weakness over the two weeks ending March 8, 2025. Despite this, there was a marginal year-over-year (Y/Y) growth improvement to +0.1% for the March quarter-to-date, a slight increase from the -0.8% reported two weeks prior.
e.l.f. Beauty’s POS experienced declines Y/Y in six out of the last ten weeks. The company’s guidance for the fourth quarter of fiscal year 2025 suggests sales ranging from a 1% decrease to a 3% increase Y/Y. According to Weiser, this guidance appears potentially achievable due to e.l.f. Beauty’s strong international growth. Nonetheless, there is a concern that the fiscal year 2026 guidance might not meet the Street’s expectations of an 11% increase in sales and a 12% rise in EBITDA.
Weiser also commented on e.l.f. Beauty’s product innovation, noting that while recent new products appear to be iterative, a significant product launch has been rescheduled to April, earlier than the initially planned summer release. The price target of $75 set by DA Davidson is based on a multiple of 14 times the firm’s estimated calendar year 2026 EBITDA of $314 million. The reaffirmation of the Neutral rating and price target reflects a cautious outlook on the company’s financial performance in the near term, balanced by the potential for growth from new product launches.
In other recent news, e.l.f. Beauty has secured a $500 million revolving credit facility, which amends its existing credit agreement to introduce favorable changes in borrowing costs and financial covenants. This facility, maturing on March 3, 2030, provides the company with capital for corporate needs, including working capital and potential acquisitions. Meanwhile, DA Davidson has adjusted its outlook on e.l.f. Beauty, reducing the stock price target from $80 to $75, while maintaining a Neutral rating. This revision follows discussions with the company’s CEO about a slowdown in point-of-sale growth and other strategic factors. Piper Sandler, however, reiterated its Overweight rating with a price target of $102, expressing confidence in the company’s performance in untracked channels such as international sales and digital platforms. Recent sales data show a deceleration in U.S. tracked channels, but Piper Sandler maintains that e.l.f. Beauty’s diverse channels could bolster its performance. Additionally, DA Davidson’s analysis suggests that e.l.f. Beauty’s fiscal year 2026 guidance may not meet market expectations, indicating cautious optimism.
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