Analysts have raised e.l.f. Beauty’s price target slightly to $135.29 as optimism around easier comps, sustained market share gains, tariff mitigation, and expected gross margin improvement is moderated by near-term margin pressures and cautious guidance.
Analyst Commentary
- Bullish analysts see multiple tailwinds including easier year-over-year comps beginning mid-July and continued share gains in the mass cosmetics category.
- The China tariff situation is viewed as less severe than initially feared, limiting downside risk.
- Early quarter softness in scanner data and concerns over margin impacts from tariffs prompted some moderation in near-term estimates, alongside higher non-marketing SG&A outpacing sales.
- Forward-looking optimism is based on expected gross margin improvement from price increases effective August 1, cost savings measures, and potential supplier concessions.
- Bearish analysts cite below-consensus Q2 margin guidance, lack of broader guidance despite a Q1 beat, and near-term sales/margin pressures as reasons for more cautious positioning.
What's in the News
- e.l.f. Beauty completed a $50 million share repurchase program, buying 701,346 shares (1.24%) under a buyback announced August 2024; no shares were repurchased in the most recent quarter.
- The company issued earnings guidance for the first half of fiscal 2026, expecting net sales growth above the 9% reported in the first quarter.
- e.l.f. Beauty was removed from several Russell Growth benchmark and index constituents and simultaneously added to multiple Russell Value benchmark and index constituents.
- e.l.f. announced a foundational partnership with Hello Sunshine to co-launch Sunnie, a media and lifestyle brand aimed at empowering young women, supported by Gen Z-focused research and a targeted content platform.
Valuation Changes
Summary of Valuation Changes for e.l.f. Beauty
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $134.15 to $135.29.
- The Net Profit Margin for e.l.f. Beauty has fallen from 13.77% to 12.98%.
- The Future P/E for e.l.f. Beauty remained effectively unchanged, moving only marginally from 32.16x to 32.74x.
Disclaimer
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