e.l.f. Beauty (ELF) PT Raised to $100 at Truist Securities

Truist Securities analyst Bill Chappell raised the price target on e.l.f. Beauty (NYSE: ELF) to $100.00 (from $75.00) while maintaining a Buy rating.

The analyst commented, "For the first few years that ELF was a public company price checks were easy to do. Virtually every product was listed at $2, $3 or $6. In 2018 the company first started taking selective pricing in response to the China tariffs implemented by the US government (large majority of ELF’s products are manufactured in China). The company also began rolling out higher priced innovations and entered the skin cream category, which carry higher price points. In the past two years, ELF has continued to take selective pricing in response to spiking input and supply chain costs. Today the price points at WMT look dramatically different with majority of products listed for $5, $6, $7 or $10, less than 5% listed for $3 and no products listed for $2. What is more interesting is as per figure 1, ELF’s retail prices are still below those of key mass competitors such as Covergirl (COTY, NR), Revlon (REVRQ, NR) and Maybelline (LRLCY, NR), let alone similar prestige products from Estee Lauder (EL, NR) or L’Oréal (LRLCY, NR). Additionally, ELF’s volume growth has accelerated over the past two years, according to scanner data, despite the higher pricing."

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