- MorganStanley Analyst Dara Mohsenian reiterated an overweight position on the shares of Eleven Beauty Inc ELEVEN and raised the price target from $42 to $46, up 14%.
- ELF remains the analyst’s preferred SMID cap pick, with recent US scanner data confirming potential fundamental upside in the near term and driving higher estimates/price targets.
- ELF’s momentum is being driven by its market share gains, which are accelerating as it adopted pricing with limited resultant volume demand elasticity and its lower-priced portfolio benefiting from recent consumer trade falls, Mohsenian said.
- also read: Elf Beauty outperforms peers: Expect 16% revenue growth in fiscal 2023, says analyst
- The company’s stock gains, the analyst added, should also fuel longer-term momentum with a positive cycle as retailers allocate more shelf space to ELF, boosting sales.
- The analyst thinks revenue growth should also allow for continued reinvestment in marketing, further supporting the stock gains.
- Mass beauty category growth continues to recover post-COVID, Mohsenian specifies.
- Price promotion: ELF shares traded 1.72% higher at $40.20 on the last check Wednesday.
- Photo via company
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