Loop Capital Starts The Honest Co. (HNST) at Hold

Loop Capital analyst Laura Champine initiates coverage on The Honest Co. (NASDAQ: HNST) with a Hold rating and a price target of $15.00.

The analyst comments "We are initiating coverage of HNST with a Hold rating and $15 price target for the shares. The Honest Company, Inc. is a clean and natural consumer goods company with a strong brand following. Launched as a digital platform, Honest has built a proprietary direct-to-consumer sales channel that gives HNST valuable data to better understand core customers and tailor product offerings accordingly. Honest has developed successful partnerships with other ecommerce sales channels such as Amazon.com, working alongside Honest.com to drive ecommerce sales even higher. Over 55% of the total Honest revenue comes from digital, with 45% coming from traditional brick-and-mortar retailers. We expect Honest revenue to grow 13.6% YoY in Q2 2021, with a gross margin of 36%. The Diapers and Wipes category currently makes up most of total revenue; however, we expect the Skin and Personal Care category to be a growth engine for the company as HNST penetrates a large beauty market with its social media-oriented marketing. We are projecting $338.7M in 2021 revenues."

For an analyst ratings summary and ratings history on The Honest Co. click here. For more ratings news on The Honest Co. click here.

Shares of The Honest Co. closed at $15.78 yesterday.

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