e.l.f. Beauty (ELF) PT Raised to $100 at Goldman Sachs

Goldman Sachs analyst Bonnie Herzog raised the price target on e.l.f. Beauty (NYSE: ELF) to $100.00 (from $95.00) while maintaining a Buy rating.

The analyst comments: “ELF reported a robust FQ1 top- and bottom-line beat driven primarily by strong rhode outperformance coupled with a positive contribution from tariff refunds. FQ1 EPS came in well ahead of expectations at $1.75 (vs. GS/FactSet cons ests of $0.73/$0.72) - driven by top-line leverage and a $0.68 EPS benefit from tariff refunds. Net sales were well ahead of expectations, up ~+36%, while organic sales were down -HSD% reflecting a difficult comparison against a busy shipping period and the launch of e.l.f.'s Glow Reviver Melting Balms last year. Gross margins were also well ahead of expectations, expanding ~+1,400bps to 83.2%, primarily driven by $50M in tariff refunds (a ~1,050bps benefit), driving adj. EBITDA growth of +93% and higher adj. EBITDA margins (~+1,048bps to 35.1%). Importantly, mgmt raised its FY27 guidance given momentum in its underlying business, but primarily due to the tariff refund. Ultimately, we believe mgmt's FY27 guidance could prove to be conservative. We raise our FY27/FY28 EPS estimates by +7.2%/+3.0%, primarily as a result of flowing through the Q1 beat, and increase our price target by $5 to $100. We reiterate our Buy rating on ELF and continue to see a favorable risk reward, especially with ELF's foray into hair care adding another lever of growth.”

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