Jefferies reiterates Buy rating on e.l.f. Beauty stock, cites Rhode’s success

Published 23/09/2025, 19:42
Jefferies reiterates Buy rating on e.l.f. Beauty stock, cites Rhode’s success

Investing.com - Jefferies maintained its Buy rating and $135.00 price target on e.l.f. Beauty (NYSE:ELF) stock on Tuesday. The company, currently valued at $8.1 billion, has demonstrated impressive financial health with a "GREAT" rating according to InvestingPro metrics.

The investment firm cited early YipitData results showing Rhode’s record-setting debut at Sephora, which generated over $10 million in sales within just two days.

Jefferies noted that Rhode benefited from strong in-store displays, successfully capturing consumer spending from established brands and driving market share shifts in the beauty sector.

The firm sees potential for upward estimate revisions for e.l.f. Beauty based on Rhode’s outsized success in the marketplace.

Jefferies also highlighted that e.l.f. remains positioned to gain U.S. market share as COTY pulls back on its CoverGirl brand, while easing comparisons and trade-down trends in Europe should support e.l.f.’s value positioning and international growth.

In other recent news, e.l.f. Beauty has been the focus of several analyst adjustments and strategic developments. BofA Securities raised its price target for e.l.f. Beauty to $160, maintaining a Buy rating, driven by the successful launch of the recently acquired Rhode brand and an upward revision of the fiscal 2026 sales growth forecast to 26%. Meanwhile, Deutsche Bank downgraded e.l.f. Beauty to Hold, despite raising its price target to $128, following a 25% rally in the company’s shares since early August. Morgan Stanley upgraded the stock to Overweight, with a new price target of $134, citing an attractive entry point after recent stock volatility due to a slowdown in U.S. sales. In contrast, Deutsche Bank previously upgraded the stock to Buy after a 9.5% drop in share price post the fiscal first-quarter 2026 results, maintaining a price target of $121. Additionally, BofA Securities reiterated its Buy rating and $135 price target, highlighting the Rhode acquisition and international expansion efforts. These developments reflect varied analyst perspectives on e.l.f. Beauty’s strategic moves and market performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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