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On Thursday, Jefferies, a well-known financial services company, increased its price target for e.l.f. Beauty shares, trading on the New York Stock Exchange under the ticker (NYSE:ELF), from $75.00 to $115.00. This adjustment comes after the company reported impressive financial results, with revenue growth of 46.27% and industry-leading gross margins of 71.11%, surpassing Wall Street expectations. According to InvestingPro analysis, the company maintains strong financial health with 18 key investment insights available to subscribers.
The sales boost for e.l.f. Beauty was primarily attributed to volume growth, although there was some counterbalance from the product mix. The company maintains a healthy financial position with a current ratio of 1.9 and operates with moderate debt levels. Despite the positive performance, the company refrained from providing a fiscal year 2026 guidance, citing the potential volatility stemming from uncertain long-term tariff levels.
In a strategic move, e.l.f. Beauty has announced the acquisition of Rhode, a brand co-founded by Hailey Bieber. The deal, valued at $1 billion, includes a range of prestige skincare and color cosmetic products. Jefferies expressed enthusiasm about the acquisition, considering it a beneficial addition to e.l.f. Beauty’s portfolio and one that presents considerable potential for growth moving forward.
The price target increase to $115 reflects Jefferies’ confidence in e.l.f. Beauty’s recent performance and future prospects following the Rhode acquisition. The firm’s analyst maintained a "Buy" rating for the stock, indicating a positive outlook for the company’s share value.
In other recent news, e.l.f. Beauty has reported its fourth-quarter results, revealing a notable performance with earnings per share (EPS) of $0.78, surpassing the consensus forecast of $0.73. The company’s revenue also exceeded expectations, reaching $332.6 million against the anticipated $327.99 million. This performance marks the continuation of e.l.f. Beauty’s growth trajectory, with net sales increasing by 28% and adjusted EBITDA rising by 26% over the fiscal year. A significant development for the company is the acquisition of the skincare brand Rhode, valued at $1 billion, which is expected to enhance e.l.f. Beauty’s product portfolio and market position. Analysts from firms such as Canaccord Genuity and BofA Securities have responded positively to this acquisition, raising their price targets for e.l.f. Beauty to $114 and $113, respectively, while maintaining a Buy rating. Goldman Sachs also reiterated its Buy rating with a price target of $120, acknowledging the strategic advantage of the Rhode acquisition. Despite the lack of specific fiscal guidance due to tariff uncertainties, e.l.f. Beauty’s management remains optimistic about navigating these challenges and continuing its international expansion.
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