e.l.f. Beauty (ELF) PT Lowered to $90 at Canaccord
Canaccord analyst Susan Anderson lowered the price target on e.l.f. Beauty (NYSE: ELF) to $90.00 (from $100.00) while maintaining a Buy rating.
The analyst commented: "e.l.f. Beauty reported 4Q26 results (Mar-end) with sales up +35.1% YOY to $449.3M and vs. CG/consensus estimates of +27.3%/+27.2% and implied guidance of sales to range between $413-424M in sales. The beat was primarily driven by outperformance from Rhode, which saw sales around ~$112M vs. implied guidance of $82-87M. The rest of the business was up around +1%. Although management didn't break out how the e.l.f. or Naturium brands performed individually, we believe e.l.f. sales were negative while Naturium continued to see strong +DD growth. The strong Rhode performance led to adj. EPS of $0.32 vs. our/Street estimate of $0.30/$0.29 and implied guidance of $0.29. Looking ahead, the growth story for ELF is built upon continued strength from the Rhode and Naturium brands as we believe the e.l.f. brand has been challenged after last year's price taking in an increasingly sensitive consumer environment. Although disappointing the flagship brand appears to be struggling, we believe management has a handful of initiatives to help revitalize the e.l.f. brand, including selective price reductions, improved innovation, focusing on key international markets, and updates to the leadership team. We believe ELF is facing some growing pains, but we believe the company still has a lot of growth opportunities across the entire portfolio and is positioned well for strong cash generation to provide capital allocation flexibility. We reiterate our BUY rating but lower our PT from $100 to $90 due to anticipating lower FY2 earnings."