e.l.f. Beauty price target raised to $150 from $115 at Jefferies

Jefferies raised its price target on e.l.f. Beauty (NYSE: NYSE:ELF) to $150 from $115 on Monday, while maintaining a Buy rating on the cosmetics company’s stock. The company, currently trading at $124.52, has demonstrated impressive growth with a 28.28% revenue increase over the last twelve months, though InvestingPro analysis suggests the stock is trading above its Fair Value.

The research firm cited e.l.f.’s acquisition of skincare brand Rhode as a key factor in the increased valuation, noting several growth catalysts including Sephora distribution, new product launches, and improving web traffic.

Jefferies highlighted that Rhode currently ranks as the number one beauty brand globally in terms of earned media value growth, with less than 1% of its social content being sponsored.

The firm estimates that the Rhode transaction could be low double-digit percentage accretive to e.l.f. Beauty’s earnings per share in fiscal year 2026, with projected Rhode revenues of $240 million for that period.

The new $150 price target represents approximately 21 times Jefferies’ fiscal year 2027 enterprise value to EBITDA estimate for e.l.f. Beauty.

In other recent news, e.l.f. Beauty has been the focus of several analyst updates following its announcement of fourth-quarter results that exceeded expectations. Raymond (NSE:RYMD) James raised its price target for e.l.f. Beauty to $130, maintaining a Strong Buy rating, citing the company’s growth strategies and international expansion plans. Similarly, TD Cowen also increased its price target to $130, highlighting the strategic acquisition of the skincare brand Rhode for $1 billion as a key growth driver. Truist Securities followed suit, significantly raising its price target to $125 from $75, reflecting increased confidence in e.l.f. Beauty’s sales and EBITDA projections for fiscal years 2026 and 2027.

Deutsche Bank (ETR:DBKGn) adjusted its price target to $96, maintaining a Hold rating, while acknowledging the positive initial impact of the Rhode acquisition but noting uncertainties in the operating environment. Morgan Stanley (NYSE:MS) raised its price target to $105, with an Equalweight rating, pointing to favorable outcomes related to tariffs and a beneficial court ruling. The acquisition of Rhode is expected to expand e.l.f. Beauty’s presence in the skincare market, complementing its existing product offerings. Despite some uncertainties, analysts remain optimistic about e.l.f. Beauty’s potential to capture market share in both the mass market and prestige sectors. These developments underscore the company’s strategic efforts to navigate a competitive beauty market while leveraging its recent successes.

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