Olaplex Holdings (NASDAQ:OLPX) shares surged 10.00% following Bank of America report on beauty sector growth forecast.

Olaplex Holdings (NASDAQ:OLPX) shares surged 10% in pre-market trading on Dec. 17, 2025, following a Bank of America report forecasting stronger growth for the beauty sector in 2026. The report highlighted a potential 4.9% industry revenue increase, driven by recovery in China and U.S. demand, which boosted sentiment for beauty-related stocks including Olaplex.

The stock remains down sharply year-to-date, trading at $1.44, or 31.3% below its 52-week high. Recent financial results underscore challenges: Q4 2024 revenue fell 9.8% to $100.7 million, with the Professional channel declining 27.1%. Despite $586 million in cash reserves, the company faces weak guidance for 2025, projecting revenue between $410 million and $431 million.

Analyst sentiment is mixed, with eight “Hold” ratings and three “Buy” recommendations, averaging a $1.85–$1.98 price target. Insider selling by CEO Amanda Baldwin, who offloaded 32% of her holdings for $474,000, adds caution. While the beauty sector’s shift to premiumization and digital engagement aligns with Olaplex’s prestige hair care focus, execution risks and revenue declines persist.