e.l.f. Beauty (ELF) Worth $33/Share in a Sale - DA Davidson

DA Davidson analyst Linda Bolton Weiser reiterated a Buy rating and $24.50 price target on e.l.f. Beauty (NYSE: ELF), and thinks the company is worth $33 in a sale.

Weiser commented, "Activist investor Marathon (owns 9% stake) sent an email to the CEO urging sale through an auction, claiming private market exceeds public market value. We acknowledge the stock's muted reaction to stellar F2Q20 results with 11% core sales growth was disappointing, but we think ELF could be a victim of the market rotation out of growth/momentum stocks into value names. As such, it might not be the right time for the Board to maximize value through an auction. We have long contended ELF could be a take-over candidate, and reiterate our BUY and $24.50 PT, based on 19x CY21E EBITDA of $67M. A take-out valuation could be $33, or 25x CY21E EBITDA."

For an analyst ratings summary and ratings history on e.l.f. Beauty click here. For more ratings news on e.l.f. Beauty click here.

Shares of e.l.f. Beauty closed at $16.80 yesterday.

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