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On Monday, Raymond (NSE:RYMD) James analysts raised the price target for e.l.f. Beauty stock (NYSE: NYSE:ELF) to $130 from $105, maintaining a Strong Buy rating. The decision follows a recent webinar featuring e.l.f. Beauty’s leadership, including Chairman & CEO Tarang Amin and CFO Mandy Fields, which focused on the company’s growth strategies and recent developments.
During the webinar, the management team discussed their plans for domestic and international expansion, addressing potential tariff challenges and their strategies to mitigate these issues. They also highlighted the acquisition of Rhode as a key factor expected to drive faster top-line growth over the coming years. The company, which maintains impressive gross profit margins of 71% and operates with moderate debt levels according to InvestingPro, plans to increase prices by $1 in August, regardless of changes in China tariff rates.
The analysts expect e.l.f. Beauty to maintain strong growth in the first quarter of 2026 compared to the fourth quarter of 2025. This growth trajectory is attributed to the expansion into new retail spaces, such as the Naturium sell-in to ULTA, and continued international expansion efforts, which are anticipated to be more pronounced in the second half of the fiscal year.
Despite recent softness in the beauty category, e.l.f. Beauty is projected to outperform its peers significantly. The analysts have also raised their non-GAAP earnings per share estimate for fiscal year 2026 to $3.75, factoring in the positive impact of the Rhode acquisition.
Raymond James remains optimistic about e.l.f. Beauty’s future performance, citing the company’s innovative strategies and expansion plans as key drivers for continued success in the competitive beauty market.
In other recent news, e.l.f. Beauty has been the focus of significant analyst attention following its announcement of fourth-quarter results and a major acquisition. The company reported financial outcomes that exceeded expectations, leading to various price target adjustments from analysts. Truist Securities raised its price target to $125, citing updated sales and EBITDA estimates for fiscal years 2026 and 2027. TD Cowen also increased its target to $130, reflecting optimism about e.l.f. Beauty’s acquisition of the skincare brand Rhode for $1 billion. Morgan Stanley (NYSE:MS) adjusted its target to $105, noting positive developments, including favorable tariff outcomes and a beneficial court ruling. Deutsche Bank (ETR:DBKGn) lifted its price target to $96 but maintained a Hold rating, highlighting uncertainties in the operating environment despite strong fourth-quarter results. Piper Sandler raised its target to $109, emphasizing e.l.f. Beauty’s robust business performance and strategic capital deployment. The acquisition of Rhode is seen as a strategic move to enhance e.l.f. Beauty’s market position, with analysts expressing varied levels of optimism about the company’s future prospects.
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