“We believe a refocus on core operations, with cost cuts, is a more likely scenario, though we note that ELF already has among the highest margins in Beauty (20%+ EBIT/EBITDA margins), and though we agree that ELF needs to invest more in advertising, we wonder how much fat there truly is to cut. Overall, we believe the presence of an activist should help support the share price, but see few catalysts (outside of a sale) to drive valuation higher. We reiterate our Market Perform rating.”
According to TipRanks.com, Herzog is a 4-star analyst with an average return of 6.5% and a 67.1% success rate. Herzog covers the Consumer Goods sector, focusing on stocks such as The Estée Lauder Companies Inc, Edgewell Personal Care, and Keurig Dr Pepper Inc.
The word on The Street in general, suggests a Hold analyst consensus rating for elf Beauty Inc with a $12.79 average price target.
Based on elf Beauty Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $1.25 million. In comparison, last year the company had a net profit of $3.97 million.
Based on the recent corporate insider activity of 23 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ELF in relation to earlier this year.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
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.