In a report released today, Bonnie Herzog from Wells Fargo reiterated a Sell rating on elf Beauty Inc (ELF), with a price target of $6. The company’s shares closed yesterday at $12.37.
Herzog said:
“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. In addition, ELF imports nearly 100% of its products from China, which could cause downside risk to estimates if tariffs are raised to 25% (not reflected in FY20 guidance). Bottom line – Given mgmt’s soft outlook, estimates will be coming down & we expect multiple contraction, as ELF shares are now trading at a 74x to our CY20 ests (including stock-based comp), extremely high multiples for a company struggling to grow. We reiterate our Underperform rating and $6 price target.”
According to TipRanks.com, Herzog is a 4-star analyst with an average return of 5.1% and a 66.4% 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.
elf Beauty Inc has an analyst consensus of Hold, with a price target consensus of $9.72.
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The company has a one-year high of $20.75 and a one-year low of $6.71. Currently, elf Beauty Inc has an average volume of 861.7K.
Based on the recent corporate insider activity of 64 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 the provision of cosmetic and skin-care product. It operates through the U.S and International geographical segments. The company focuses on the e-commerce, national retailers, and international business channels. Its product portfolio includes eyes, lips, face, kits, tools, and skin care categories.
