E.l.f. Beauty stock has dropped 21% this year and is down 48% from its record high of $218 in June. Despite this, Wall Street analysts remain optimistic about the company's growth.
TD Cowen analyst Oliver Chen lowered the price target from $235 to $150 but maintained a "Buy" rating. Chen attributes the stock's decline to lower-than-expected guidance for Q2 sales and EBITDA margin. E.l.f.’s affordable cosmetics, especially popular among younger consumers, benefit from a strong social media marketing strategy.
First-quarter revenue for fiscal 2025 reached $324.5 million. Most analysts still rate the stock as a "Buy," including Canaccord Genuity’s Susan Anderson, who set a $250 price target. The company also approved a $500 million stock buyback program.
Long story short: the price entered the accumulation zone. Good buy for a mid-term /long-term.
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