Deutsche Bank Upgrades e.l.f. Beauty (ELF) to Buy, 'All Made Up and Ready To Go'

Deutsche Bank analyst Steve Powers upgraded e.l.f. Beauty (NYSE: ELF) from Hold to Buy with a price target of $121.00.

The analyst comments "Heading into yesterday, on the back of FY1Q26 results, we said that despite many moving parts, we did not think a significant downward move in ELF's stock was warranted (noting only minor changes to our forecasts looking out to FY27, and our establishment of a $121 price target post-results). On Thursday, ELF's stock declined -9.5% (vs. S&P 500 ~flat), leaving the stock below $100 and presenting in our view an attractive entry point with compelling 20%+ potential upside. We make no changes to our forecasts, but thus upgrade the shares to Buy. Based on investor feedback post-FY1Q results, we continue to sense elevated confusion and reservation with respect to management's messaging on likely 2Q revenue and margin performance given nuance related to the timing/contribution of ELF's own price increases, tariff flow-through, and rhode integration impacts (with buyside concerns of only +LDD revenue growth more consistent with the letter of ELF's ">9%" guidance than what DBe/consensus has modeled, and thus lower EBITDA flow-through). From our perspective, any such downside risk would likely be solely timing-related, with minimal carryover effects on our 2H or FY27 outlook. However, moreover, we instead see consensus numbers settling out in a very reasonable spot."

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 $99.92 yesterday.

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