e.l.f. Beauty (ELF) PT Raised to $32 at Jefferies as Growing Catalysts Make Consensus Look Low

Jefferies analyst Stephanie Wissink raised the price target on e.l.f. Beauty (NYSE: ELF) to $32.00 (from $29.00) after the company partnered with celebrity hairstylist Jen Atkin, an influencer with ~4M followers. The company announced a new elf+Jen Atkin collaboration in development for ~2 yrs including 7 highly curated items (11 SKUs) ranging in price from $5-$20 launched on elf.com (Apr 5), ulta.com (Apr 7) and add Boots stores & online (Apr 14) and Ulta stores (Apr 18).

The analyst reiterated a Buy rating, stating "Multi-year framework calls for sales +M/HSD and Adj-EBITDA exceeding sales growth. We are inching our model from +6% to +7.5% for sales - implying an incremental $45-$50M of sales over 2 years - but see even further upside potential and as such, are raising our PT to a Street high $32 on 21x FY23 (24 mos out) EBITDA of $78M. We would expect accel FCF over the next 24 months to also contribute to pot. excess cash on hand and future tuck in brand acquisitions."

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