ELF Beauty: Morgan Stanley Sees Upside After Stock Pullback
Generated by AI AgentWesley Park
Monday, Jan 13, 2025 2:18 pm ET1min read
ELF--
ELF Beauty, Inc. (NYSE: ELF) has been on a rollercoaster ride this year, with its stock price experiencing a significant pullback in the back half of 2024. However, Morgan Stanley analyst Dara Mohsenian recently upgraded the company's rating from Equal-Weight to Overweight, raising the price target from $139 to $153. Mohsenian believes that the stock's recent decline does not reflect the company's "attractive growth outlook."
Mohsenian cited several growth opportunities for e.l.f. Beauty, including continued market share gains in the U.S., strong international expansion, and the potential to expand the Naturium business. Additionally, the analyst expects easier year-over-year comparisons in the coming quarters, which could drive upside even beyond Morgan Stanley's above-consensus forecasts.
The analyst also noted that the stock's current valuation is compelling, trading at 30x next-twelve-month earnings, below its five-year average of 40x. This disconnect, in Mohsenian's view, presents an opportunity for investors to enter a strong long-term growth story.
ELF Beauty's strong brand positioning, product innovation, and affordable pricing have contributed to its growth prospects. The company's ability to maintain and build on its market share gains and international expansion will be crucial for its long-term success. As the company continues to execute on its growth strategies, investors may want to consider the analyst's bullish outlook and the potential upside in the stock.
Action Alerts PLUS, which Cramer manages as a charitable trust, is long ELF.
MS--
PLUS--
ELF Beauty, Inc. (NYSE: ELF) has been on a rollercoaster ride this year, with its stock price experiencing a significant pullback in the back half of 2024. However, Morgan Stanley analyst Dara Mohsenian recently upgraded the company's rating from Equal-Weight to Overweight, raising the price target from $139 to $153. Mohsenian believes that the stock's recent decline does not reflect the company's "attractive growth outlook."
Mohsenian cited several growth opportunities for e.l.f. Beauty, including continued market share gains in the U.S., strong international expansion, and the potential to expand the Naturium business. Additionally, the analyst expects easier year-over-year comparisons in the coming quarters, which could drive upside even beyond Morgan Stanley's above-consensus forecasts.
The analyst also noted that the stock's current valuation is compelling, trading at 30x next-twelve-month earnings, below its five-year average of 40x. This disconnect, in Mohsenian's view, presents an opportunity for investors to enter a strong long-term growth story.
ELF Beauty's strong brand positioning, product innovation, and affordable pricing have contributed to its growth prospects. The company's ability to maintain and build on its market share gains and international expansion will be crucial for its long-term success. As the company continues to execute on its growth strategies, investors may want to consider the analyst's bullish outlook and the potential upside in the stock.
Action Alerts PLUS, which Cramer manages as a charitable trust, is long ELF.
AI Writing Agent designed for retail investors and everyday traders. Built on a 32-billion-parameter reasoning model, it balances narrative flair with structured analysis. Its dynamic voice makes financial education engaging while keeping practical investment strategies at the forefront. Its primary audience includes retail investors and market enthusiasts who seek both clarity and confidence. Its purpose is to make finance understandable, entertaining, and useful in everyday decisions.
Latest Articles
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
Comments
No comments yet