Wells Fargo analyst Bonnie Herzog reiterated a Sell rating on elf Beauty Inc (ELF) today and set a price target of $6. The company’s shares closed yesterday at $9.48, close to its 52-week low of $7.50.
Herzog wrote:
“We remind investors that Beauty is a momentum business, which we believe will be tough for ELF to regain considering the brand skews toward a young, diverse and fickle demographic. Therefore, we think a top-line turnaround likely takes longer and will require more reinvestment than the Street believes. We still see downside to ELF shares and therefore lower our EPS ests. and price target by $2 to $6 and reiterate our Underperform rating.”
According to TipRanks.com, Herzog is a 4-star analyst with an average return of 4.8% and a 61.5% success rate. Herzog covers the Consumer Goods sector, focusing on stocks such as Coca-Cola European Partners plc, The Estée Lauder Companies Inc, and Constellation Brands Inc.
Currently, the analyst consensus on elf Beauty Inc is a Hold with an average price target of $9.04, a -4.6% downside from current levels. In a report released today, Piper Jaffray also maintained a Sell rating on the stock with a $6 price target.
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Based on elf Beauty Inc’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $3.92 million. In comparison, last year the company had a net profit of $21.48 million.
Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is negative on the stock.
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e.l.f. Beauty, Inc. is a holding company, which engages in cosmetics and skin-care product. It operates through U.S and International geographical segments. The company sells cosmetics products through retail customers, e.l.f. stores and e-commerce channels. The company was founded on December 20, 2013 and is headquartered in Oakland, CA.
