Analysts have lowered their price target for Helen of Troy from $29 to $27. This change reflects updated views on the company's performance and outlook.
Analyst Commentary
Following the revision of Helen of Troy's price target, analysts have offered a mixed outlook on the company's prospects. The discussion highlights both strengths and areas of concern tied to valuation, execution, and future growth potential.
Bullish Takeaways
- Bullish analysts note that the current valuation reflects much of the recent headwinds and suggests limited downside from these levels.
- There is recognition of the company's ability to maintain a neutral rating, indicating confidence in its capacity to manage through short-term challenges.
- Some analysts point to the firm's consistent execution in navigating market volatility, which may provide support for share price stability.
- Growth in select business units is expected to offer resilience and potential upside if consumer demand trends improve.
Bearish Takeaways
- Bearish analysts remain cautious due to recent reductions in forecasted earnings growth, which directly impacts the fair value assessment.
- Ongoing competitive pressures and evolving consumer preferences are seen as risks that could hinder Helen of Troy's ability to regain momentum.
- Concerns linger about the company’s ability to rapidly adjust its portfolio and execution strategies in a challenging macroeconomic environment.
- Uncertainty regarding the pace of recovery in core markets may continue to limit near-term stock performance.
What's in the News
- Revlon Hair Tools, a Helen of Troy brand, launched the new Revlon One-Step Multi-Styler, a 3-in-1 tool featuring interchangeable attachments and advanced ceramic technology for faster, professional-quality at-home styling (Product-Related Announcements).
- Helen of Troy issued guidance for fiscal 2026, forecasting a decline in both third quarter and full-year revenues, with net sales expected between $491 million and $512 million for Q3 and $1.739 billion and $1.780 billion for the full year. The company also projects a GAAP diluted loss per share of $29.90 to $29.40 for fiscal 2026 (Corporate Guidance, New/Confirmed).
- The company reported no repurchases of shares between June and August 2025 under the most recent buyback program, leaving the program with no shares bought back as of now (Buyback Tranche Update).
Valuation Changes
- Fair Value: Unchanged at $29.33 per share.
- Discount Rate: Remains steady at 12.5%.
- Revenue Growth: Essentially unchanged at approximately 0.65% year over year.
- Net Profit Margin: Risen slightly from 6.97% to 7.43%.
- Future P/E: Fallen modestly from 7.43x to 6.96x.
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