e.l.f. Beauty Shares Climb 3.63% Amid Strategic Acquisition and Analyst Outlook Shifts as Trading Volume Falls to 499th in Market Activity

On September 3, 2025, e.l.f. Beauty (ELF) rose 3.63% to $128.30, with a trading volume of $0.19 billion, a 21.95% decline from the previous day, ranking 499th in market activity. The stock’s movement followed mixed analyst activity and strategic developments, including a price target revision by Deutsche Bank and a major acquisition.

Deutsche Bank downgraded ELF from “Buy” to “Hold” amid concerns over valuation and shifting consumer sentiment, though it raised its price target to $128. The downgrade coincided with a technical rebound, suggesting investors may be prioritizing long-term growth potential over recent sentiment. Meanwhile, Morgan Stanley upgraded the stock to “Overweight” with a $134 target, reflecting broader Wall Street confidence in its expansion prospects.

e.l.f. Beauty’s recent $1 billion acquisition of Rhode is seen as a strategic move to capitalize on viral trends and expand its affordable premium offerings. However, product price hikes and CEO warnings about a “harsh new reality” for consumers have introduced short-term uncertainties, potentially tempering enthusiasm. Analysts highlight the stock’s volatility, with 48 moves exceeding 5% in the past year, indicating sensitivity to both fundamental and technical factors.

Investors remain cautious as ongoing tariff concerns and mixed earnings reports—such as a 13% plunge after the company withdrew its full-year forecast—weigh on near-term outlooks. Despite this, the stock has gained 4.3% year-to-date and remains near its 52-week high of $140.63. A $1,000 investment in ELF five years ago would now be worth $6,623, underscoring its long-term growth trajectory.

Backtest results indicate that a $1,000 investment in e.l.f. Beauty five years ago would be valued at $6,623 today, reflecting the stock’s significant appreciation over the period.