International Expansion And Sephora Rollout Will Elevate Brand Position

Analysts have raised their average price target for e.l.f. Beauty from approximately $142.79 to $150.79. They cite improved sales outlooks and contribution from new brand launches, particularly Rhode, as well as strong execution across key growth initiatives.

Analyst Commentary

Recent research updates from Wall Street reflect a generally optimistic outlook on e.l.f. Beauty, though some divergent views remain as the company navigates its latest growth initiatives and product launches.

• Bullish analysts have steadily raised price targets, reflecting increasing confidence in the company’s sales trajectory and overall execution capabilities.
• Recent strong performance from the Rhode brand, especially following its well-received Sephora launch, has led to upward revisions in both sales and earnings estimates for the next several years.
• There is growing visibility around the company’s ability to exceed consensus growth expectations, supported by positive trends in customer response and foot traffic.
• Ongoing expansion of major brands globally, successful recent pricing actions, and a robust pipeline of new product innovation are seen as important levers for future growth and margin expansion.

• Some analysts have shifted to a more neutral stance, expressing caution around the sustainability of recent sales momentum and the potential for margin compression after pricing increases.
• Certain research notes cite concerns over limited forward guidance for upcoming quarters, particularly regarding margins. This introduces uncertainty in near-term projections.
• Despite price increases, questions remain about elasticity and the impact on volumes, as well as whether the company can sustain its value positioning compared to both mass and prestige offerings.

What's in the News

• e.l.f. Beauty debuted a new episode in its award-winning Show Yourse.l.f. film series, highlighting pro soccer player Jess Carter's journey and reinforcing the company's focus on promoting visibility and access in women's sports (Key Developments).
• The company reported it had completed the repurchase of 701,346 shares for $50 million as part of its previously announced buyback plan. No further shares were bought back during the latest tranche (Key Developments).
• e.l.f. Beauty issued earnings guidance for the first half of fiscal year 2026, projecting net sales growth above the 9% achieved in the first quarter of the same fiscal year (Key Developments).

Valuation Changes

• Consensus Analyst Price Target has risen from approximately $142.79 to $150.79, reflecting increased expectations for the company's fair value.
• Discount Rate has edged up slightly from 7.64% to 7.66%, indicating a marginally higher perceived risk or required return.
• Revenue Growth projections have increased modestly from 19.08% to 19.22%.
• Net Profit Margin estimates have improved from 12.99% to 13.22%, suggesting a more optimistic outlook on profitability.
• Future P/E ratio has climbed from 34.47x to 35.66x, which implies that analysts expect a slightly higher valuation multiple.