UPDATE: Guggenheim Upgrades The Honest Co. (HNST) to Buy
Guggenheim analyst Laurent Grandet upgraded The Honest Co. (NASDAQ: HNST) from Neutral to Buy with a price target of $14.00.
The analyst comments "Honest reported disappointing 2Q results that sent the stock tumbling as sales growth of 3.1% in the quarter missed consensus of 10.2%. In addition, management reset expectations for FY21 related to household & wellness category growth, digital vs retail channel dynamics, and gross margins in 2H only three months after the company’s public debut in May. While we think the market will assign a higher degree of risk to HNST shares, we are raising our rating to BUY from NEUTRAL given the significant pullback last Friday that suggests, in our view, an unbalanced risk-reward now embedded in the valuation. We are changing our EPS estimates in FY21 / FY22 / FY23 to -$0.22 / -$0.04 / $0.04 (prev -$0.13 / -$0.01 / $0.07) and reinstating our price target at $14."
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 $14.05 yesterday.