Bernstein sees TI’s likely price hike benefiting Infineon, Renesas stock
Saturday, Piper Sandler reaffirmed its Overweight rating on e.l.f. Beauty (NYSE:ELF) shares, maintaining a price target of $81.00. The endorsement follows e.l.f. Beauty’s announcement of a $1 price increase on its products, which was shared via Instagram. The price adjustment, set to take effect on August 1st, was larger and earlier than Piper Sandler analysts had expected. According to InvestingPro data, analyst targets for ELF currently range from $70 to $120, reflecting diverse market expectations for this beauty retailer, which maintains a GREAT financial health score.
Analysts at Piper Sandler expressed continued confidence in e.l.f. Beauty, suggesting that the announced price hike should suffice to counterbalance the impact of tariffs and protect the company’s gross profit dollars. They also speculate that the price increase could potentially safeguard even more profits, considering the current suspension of Chinese tariffs. InvestingPro data reveals the company already maintains impressive gross profit margins of 71.11%, with revenue growing at 46.27% over the last twelve months.
The timing of the price increase, ahead of schedule, has led analysts to adopt a positive outlook on the company’s sales in the second half of the fiscal year 2026. They project that the early price changes could contribute to stronger full-year sales growth than the currently estimated 9%.
Despite e.l.f. Beauty’s stock having shown a significant recovery in recent weeks, Piper Sandler’s Overweight rating and $81 price target remain unchanged. The firm anticipates that additional details regarding the price increase and its implications for financial modeling will be provided during e.l.f. Beauty’s earnings call next week.
In other recent news, e.l.f. Beauty is preparing to report its fourth-quarter earnings on May 28, with expectations set for strong results that may exceed forecasts. This comes amid recent developments, including a $1 price increase on some products, which the company announced would still keep 75% of its offerings at $10 or below. Raymond (NSE:RYMD) James has maintained a Strong Buy rating with a $95 target, suggesting confidence in the company’s pricing strategy and international expansion efforts.
Meanwhile, DA Davidson adjusted its price target for e.l.f. Beauty from $75 to $64, citing subdued U.S. point-of-sale data despite slight improvements in growth. The firm retained a Neutral stance, expressing concerns that fiscal year 2026 guidance might not meet market expectations. However, they noted the potential for a significant product launch in April, which could impact future performance.
In leadership changes, e.l.f. Beauty announced the resignation of long-serving board member Beth Pritchard and the appointment of Charles "Chip" Victor Bergh as a new director. Bergh brings extensive experience from his previous roles, including as President and CEO of Levi Strauss (NYSE:LEVI) & Co. These strategic moves, alongside product innovation and international growth, reflect the company’s ongoing efforts to navigate the competitive beauty industry landscape.
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