DA Davidson Downgrades e.l.f. Beauty (ELF) to Neutral

DA Davidson analyst Linda Weiser downgraded e.l.f. Beauty (NYSE: ELF) from Buy to Neutral with a price target of $80.00 (from $170.00).

The analyst comments: "ELF is still a best-in-class company, but we're lowering our rating to NEUTRAL from Buy due to uncertainty over how long the POS slowdown will last. Our near-term concerns include: (1) tariffs; (2) higher mass beauty promo levels; (3) spending for expansion and ERP roll-out; and (4) innovation that is iterative, in our view. We're cutting our FY26-FY27 sales to +5%-6% from +12% and EBITDA to +5% from +15%. We think EBITDA margin could stay flat at 22%. Valuation could undergo a further protracted re-rating, and we're lowering our target multiple to 15x from 26x and PT to $80 from $170, based on 15x CY26E EBITDA of $314 (reduced from $375M)."

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 $88.49 yesterday.

You May Also Be Interested In

• Wolfe Research Starts SpaceX (SPCX) at Outperform
• Citi upgrades AMD to buy with $575 price target ahead of Q4 earnings
• Citizens Downgrades Broadstone Net Lease (BNL) to Market Perform