Truist Securities reiterates Buy rating on Oddity Tech stock, citing growth momentum

Published 17/09/2025, 13:32
Truist Securities reiterates Buy rating on Oddity Tech stock, citing growth momentum

Investing.com - Truist Securities has reiterated its Buy rating and $78.00 price target on Oddity Tech Ltd (NASDAQ:ODD), following a group lunch with the company’s CFO. The target represents significant upside from the current price of $62.12, with analyst targets ranging from $55 to $90.

The research firm expressed increased confidence in management’s ability to maintain its "20/20 algo" - referring to 20% revenue growth and 20% profit margins - for several more years. The company has already demonstrated strong execution with impressive revenue growth of 26.12% and industry-leading gross margins of 72.93%.

Truist cited sustained momentum across Oddity’s existing brands IL Makiage and SpoiledChild as key growth drivers, along with the upcoming launch of a third brand called "Methodiq" in the fourth quarter of 2025, which is expected to begin contributing to financial results in fiscal year 2026.

Additional growth opportunities highlighted include international expansion and a fourth brand planned for launch in 2026, according to the research note.

The firm also noted Oddity Tech’s strong balance sheet with healthy free cash flow generation and conversion, which it believes provides management with flexibility to invest in growth initiatives while compounding shareholder value, with tariffs described as "manageable."

In other recent news, Oddity Tech Ltd reported better-than-expected earnings for the second quarter of 2025. The company achieved earnings per share of $0.92, surpassing the forecasted $0.84. Revenue for the quarter was $241 million, slightly above the expected $237.78 million. Additionally, Truist Securities has maintained its Buy rating on Oddity Tech, with a price target of $78.00. Truist cited strong demand and momentum in the third quarter of 2025, based on their analysis of Card Data. This reflects positive trends across the IL Makiage and SpoiledChild brands. These recent developments highlight the company’s continued strong performance in the market.

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