The unfavourable catalysts for E.L.F. Magnificence Inc (NYSE: ELF) have performed out and the corporate faces sturdy stimulus tailwinds, in accordance with Piper Sandler.
The E.L.F. Magnificence Analyst: Erinn Murphy upgraded the score for E.L.F. Magnificence from Impartial to Obese, whereas elevating the value goal from $24 to $30.
The E.L.F. Magnificence Thesis: Given the corporate’s value-oriented positioning, it’s “among the finest methods to play stimulus to the decrease to middle-income shopper,” Murphy mentioned within the improve notice.
Murphyt additionally expects E.L.F. Magnificence to profit from the “Craving To Go Out” development.
“Whereas we nonetheless count on ELF to take a position handily to assist a profitable multi-brand technique, we’re inspired by the most recent launch, Keys Soulcare, is in all ULTA doorways (and on-line). We estimate the preliminary sell-in for ELF may symbolize at the least $3M,” the analyst wrote.
Murphy raised the earnings estimates for fiscal 2022 and 2023 from 70 cents per share and 74 cents per share and from 77 cents per share to 83 cents per share, respectively.
ELF Worth Motion: Shares of E.L.F. Magnificence was buying and selling virtually flat at $26.33 on the time of publication Wednesday.
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