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On Wednesday, Citizens JMP analyst Andrew Boone increased the price target on Oddity Tech Ltd (NASDAQ:ODD) to $72 from the previous $66, while reaffirming a Market Outperform rating for the company’s shares. The company, which currently trades at $60.16, has demonstrated impressive growth with revenue increasing by 26.83% in the last twelve months. Boone’s optimism stems from Oddity’s first-quarter results of 2025 and the guidance for the second quarter, which underscore the company’s sustained core growth. According to InvestingPro analysis, the stock appears to be trading near its Fair Value, with 13 additional exclusive insights available to subscribers.
Boone’s assessment points to the potential for IL MAKIAGE and SpoiledChild, Oddity’s brands, to approach the company’s revenue goal of $1 billion each over the coming years. The company’s current revenue stands at $703.49 million, with an impressive gross profit margin of 72.93%. Although a gradual deceleration for these brands is expected, the analyst indicates that the overall revenue trajectory for Oddity is poised for acceleration with the introduction of Brand 3 later in 2025 and Brand 4 in 2026.
The analyst’s confidence in Oddity’s growth prospects is further bolstered by the company’s consistent performance, aligning with its core framework of more than 20% revenue growth and EBITDA margins exceeding 20%. Boone’s commentary suggests that the current share price, which trades at 13 times the firm’s estimated 2027 EBITDA under a ’Blue Sky’ scenario, presents an opportunity for a re-rating.
The revised price target of $72 has been set for the first time since Oddity’s initial public offering in 2023. Boone emphasizes that the increase reflects the potential for the company’s shares to appreciate further as the contributions from the new brands materialize and add to the company’s revenue streams.
In other recent news, Oddity Tech Ltd reported impressive fourth-quarter 2024 results, with earnings per share reaching $0.20, significantly surpassing the forecasted $0.11. The company’s revenue for the quarter was $124 million, exceeding expectations by nearly $5 million. Oddity Tech’s strong performance is attributed to a 27% year-over-year increase in revenue, driven by its strategic focus on direct-to-consumer sales and product innovation. JMP Securities maintained its Market Outperform rating for Oddity Tech, highlighting the company’s robust marketing campaigns and projecting over 20% revenue growth year-over-year.
Additionally, Oddity Tech’s CEO, Ron Holtzman, affirmed his commitment to the company following a significant block trade of 5.5 million shares, ensuring no further sales from him for a year. The company did not receive any proceeds from this transaction, which was conducted to enhance stock liquidity. Oddity Tech also plans to launch a telehealth platform in late 2025, expanding its product portfolio. The company remains focused on introducing new products and brands, with plans to introduce five new products per brand in 2025.
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