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Tuesday, Oddity Tech Ltd (NASDAQ:ODD) received a vote of confidence from JMP Securities as the firm maintained its Market Outperform rating and $66.00 price target, representing a 62% upside from the current price of $40.80. The company, currently valued at $2.3 billion, has impressed with its robust marketing campaigns for IL MAKIAGE and SpoiledChild on Meta (NASDAQ:META) platforms. According to InvestingPro data, five analysts have recently revised their earnings estimates upward, supporting JMP’s optimistic view on the company’s year-over-year revenue growth prospects.
The firm’s analysts noted the increased marketing activities in April, expressing optimism that Oddity is well-positioned to provide guidance suggesting over 20% revenue growth year-over-year. This aligns with InvestingPro data showing a strong revenue growth forecast of 21% for FY2025, backed by impressive gross profit margins of 72.4%. They anticipate an easing in comparative figures in the second half of 2025, which further supports their positive outlook on the company’s financial performance. InvestingPro subscribers can access 8 additional key insights about Oddity’s growth potential and financial health.
Although they expect earnings before interest, taxes, depreciation, and amortization (EBITDA) to be more heavily weighted towards the latter half of 2025 due to increased social media spending, JMP Securities sees this as a strategic investment. With current EBITDA at $125.4 million and a "GREAT" financial health score from InvestingPro, the company appears well-positioned to fund its growth initiatives. They argue that Oddity’s commitment to marketing is a precursor to the introduction of scientifically differentiated products from ODDITY Labs and the launch of new Brands 3 and 4 within the next year.
The analysts emphasized the potential for these developments to act as significant catalysts for Oddity in 2026, which could lead to a reevaluation of the company’s stock value. In their view, the innovative product offerings and strategic market expansions are key factors that could drive the company’s growth and enhance shareholder value.
JMP Securities’ reiterated rating and price target reflect their belief in Oddity’s ability to continue its upward trajectory and achieve the forecasted milestones. The firm’s assessment underscores the importance of sustained marketing efforts and product innovation in driving the company’s future success.
In other recent news, Oddity Tech Ltd reported a strong performance for the fourth quarter of 2024, significantly exceeding analysts’ expectations. The company posted earnings per share (EPS) of $0.20, well above the forecasted $0.11, and achieved revenue of $124 million, surpassing the anticipated $119.03 million. Oddity Tech plans to launch a new telehealth platform in late 2025, expanding its product offerings. The company also reported a robust free cash flow conversion rate of 130% of net income. Analyst firm Truist Securities noted that Oddity Tech’s consumer base remains resilient despite broader economic concerns. Oddity Tech continues to focus on online sales and product innovation, positioning itself favorably in the beauty and wellness industry. The company’s strategic initiatives, including the development of new products and international market expansion, are expected to drive future growth.
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