In a report released today, Bonnie Herzog from Wells Fargo maintained a Sell rating on elf Beauty Inc (ELF), with a price target of $12. The company’s shares closed yesterday at $16.55, close to its 52-week high of $17.35.
“We were particularly impressed with the acceleration in top- line growth to +7% ex. store closures. While we came away broadly optimistic about the quarter, we remain concerned with the go- forward outlook, considering: (1) guidance implies a significant deceleration in top-line growth; (2) ELF is taking significant pricing on 1/3 of skus which introduces volume uncertainty; and (3) margin pressures from tariffs and higher marketing are expected to result in material y/y declines in earnings for the rest of the year. Bulls will argue that there is further upside to guidance, but we think this is currently priced into shares as ELF is now trading at 72x EV/EBITDA our CY20 ests (including stock-based comp).”
According to TipRanks.com, Herzog is a 3-star analyst with an average return of 2.9% and a 61.5% success rate. Herzog covers the Consumer Goods sector, focusing on stocks such as Constellation Brands Inc, Edgewell Personal Care, and Monster Beverage Corp.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for elf Beauty Inc with a $15.75 average price target.
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The company has a one-year high of $17.35 and a one-year low of $6.71. Currently, elf Beauty Inc has an average volume of 684.7K.
Based on the recent corporate insider activity of 72 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.