Bank of America reaffirmed their Buy recommendation on e.l.f. Beauty (NYSE:ELF), and increased their price target from $75.00 to $105.00. The decision was made after the company’s share value grew by around 135% since September 2022. The increase was attributed to e.l.f. Beauty’s success in gaining market share in color cosmetics, expanding shelf space in major retailers, and introducing innovative products that appeal to their core consumers.
According to analysts, there are still opportunities for e.l.f. Beauty to outperform in the future, including gaining more shelf space, benefiting from product innovation and the expansion of ELF Skin, and expanding into lip and eye cosmetics.
e.l.f. Beauty has exceeded expectations and increased guidance for 2023, and Bank of America remains optimistic about the company’s prospects in 2024 and 2025, surpassing the Street estimates. For 2023, e.l.f. Beauty has forecasted net sales of $541-$555 million, which represents a growth of 38-39% year-over-year.