Truist Securities maintains Buy rating on Oddity Tech stock, citing strong demand

Published 27/08/2025, 15:06
Truist Securities maintains Buy rating on Oddity Tech stock, citing strong demand

Investing.com - Truist Securities has reiterated its Buy rating and $78.00 price target on Oddity Tech Ltd (NASDAQ:ODD), citing continued strong momentum in the third quarter of 2025. The company, which boasts impressive gross profit margins of 73% and has demonstrated strong YTD returns of 41%, continues to show robust financial health with an excellent current ratio of 6.3.

According to Truist’s analysis of its Card Data, demand trends quarter-to-date through August 23 are tracking ahead of consensus revenue estimates, reflecting broad-based momentum across both IL Makiage and SpoiledChild brands. InvestingPro data reveals the company achieved 26% revenue growth in the last twelve months, with analysts maintaining a strong Buy consensus.

The firm noted that the strong performance is fueled by continued improvements in order growth and relatively stable average revenue per user (ARPU), continuing the momentum seen in the second quarter of 2025.

Despite the positive trends, Truist is maintaining its current estimates since the quarter is only halfway complete and September comparisons year-over-year become more challenging.

Truist also highlighted that Oddity Tech is preparing to launch its third brand in the fourth quarter of 2025, the contribution from which is not yet incorporated into the firm’s fiscal year 2026 estimates.

In other recent news, Oddity Tech Ltd reported its second-quarter 2025 earnings, exceeding expectations. The company announced earnings per share of $0.92, which surpassed the projected $0.84. Additionally, revenue for the quarter reached $241 million, slightly above the anticipated $237.78 million. Despite these positive financial results, Oddity Tech’s stock faced a decline in after-hours trading. Analysts had forecasted these earnings and revenue figures, which the company managed to exceed. This development follows a period of anticipation regarding Oddity Tech’s performance in the market. Investors and analysts are closely monitoring the company’s financial health in light of these results.

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