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Needham Initiates Coverage on ODDITY Tech with Buy Rating, $72 PT.
ByAinvest
Thursday, Aug 28, 2025 6:46 am ET1min read
Needham Initiates Coverage on ODDITY Tech with Buy Rating, $72 PT.
In a significant development for Oddity Tech Ltd (NASDAQ: ODD), Needham & Company has initiated coverage on the stock with a Buy rating and a price target of $72.00. This positive outlook comes amidst a period of robust financial performance and strong market demand for the company’s products.Oddity Tech has shown impressive financial health, with gross profit margins reaching 73% and year-to-date returns of 41%. The company’s current ratio of 6.3 further indicates its strong liquidity position [1]. According to Truist Securities, which maintains a Buy rating with a $78.00 price target, the company has demonstrated significant revenue growth of 26% over the last twelve months [1]. This growth is driven by continued improvements in order growth and stable average revenue per user (ARPU).
Truist’s analysis of its Card Data reveals that demand trends through August 23 are ahead of consensus revenue estimates, reflecting broad-based momentum across both IL Makiage and SpoiledChild brands [1]. Despite these positive trends, Needham is cautious about incorporating the expected contribution from Oddity Tech’s third brand, which is set to launch in the fourth quarter of 2025, into its fiscal year 2026 estimates.
Oddity Tech’s recent second-quarter 2025 earnings report exceeded expectations, with earnings per share of $0.92 surpassing the projected $0.84. Revenue for the quarter reached $241 million, slightly above the anticipated $237.78 million [1]. Despite these positive results, the company’s stock faced a decline in after-hours trading, possibly due to investor expectations being met rather than exceeded.
Needham’s Buy rating and price target reflect its confidence in Oddity Tech’s continued growth and strong financial performance. Investors and financial professionals should closely monitor the company’s progress, particularly as it prepares to launch its third brand and as the year-end comparisons become more challenging.
References:
[1] https://www.investing.com/news/analyst-ratings/truist-securities-maintains-buy-rating-on-oddity-tech-stock-citing-strong-demand-93CH-4212973
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