Olaplex Holdings' analyst price target has been revised downward from $1.75 to $1.40 per share. Analysts cited updated revenue growth and profit margin expectations as key drivers behind the adjustment.
Analyst Commentary
Recent changes in the price target for Olaplex Holdings have highlighted a mix of optimism and caution among Wall Street analysts. Their commentary reflects new views on the company's valuation, execution capabilities, and growth trajectory.
Bullish Takeaways- Bullish analysts maintain an Equal Weight outlook, indicating that Olaplex’s valuation is now considered more in line with the company's near-term prospects.
- The revised target suggests analysts see a baseline of stability for Olaplex, with the belief that current expectations are achievable.
- Despite the downward adjustment, analysts acknowledge Olaplex’s maintained presence in the competitive hair care segment. This presence could foster opportunities if market demand rebounds.
- The tempered outlook may provide a clearer path for management to exceed expectations if execution improves or if trends in revenue stabilize sooner than anticipated.
- Bearish analysts have reduced estimates of future growth, reflecting concerns about slowing revenue momentum and compressed profit margins.
- The lowered price target underscores ongoing uncertainty regarding Olaplex’s ability to regain its previous rate of expansion.
- Analysts express caution about the company’s ability to sustain competitive advantages in a consumer environment that remains pressured.
- Further pressure on valuation may persist if profitability does not improve in upcoming quarters, as anticipated in the updated outlook.
What's in the News
- Olaplex Holdings has reached a proposed $47.5 million settlement in a class action lawsuit concerning alleged issues with company disclosures. A court hearing on the settlement is scheduled for December 1, 2025, in the United States District Court, Central District of California. (Key Developments)
Valuation Changes
- Fair value has increased slightly, rising from $1.87 per share to $1.89 per share.
- Discount rate has decreased fractionally, adjusting from 8.46% to 8.43%.
- Revenue growth expectations have grown, moving from 2.79% to 2.93%.
- Net profit margin has improved considerably, climbing from 1.0% to 11.0%.
- Future P/E multiple has declined substantially, dropping from 357.9x to 32.4x.
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