Shares of e.l.f. Beauty (NYSE: ELF) recently received a rating upgrade from Wall Street Zen, which moved its recommendation from “sell” to “hold.” This adjustment reflects a broader reassessment of the company’s stock following its latest earnings report, released on November 5, 2023.
Analysts have expressed varying opinions about e.l.f. Beauty’s financial outlook. Notably, Jefferies Financial Group revised its price target from $150.00 to $120.00, maintaining a “buy” rating. Similarly, The Goldman Sachs Group decreased its price objective from $155.00 to $135.00 while also holding a “buy” rating. On the other hand, UBS Group set a more conservative target of $105.00, categorizing the stock as “neutral.”
In total, one analyst has categorized e.l.f. Beauty as a “Strong Buy,” ten have issued “Buy” ratings, and seven have assigned a “Hold” rating. According to MarketBeat, the company currently has an average rating of “Moderate Buy” with a price target of approximately $123.53.
The recent earnings report revealed that e.l.f. Beauty posted an earnings per share (EPS) of $0.68 for the quarter, exceeding analysts’ expectations of $0.57 by $0.11. Despite a net margin of 5.90% and a return on equity of 13.77%, revenue fell short of estimates, coming in at $343.94 million against the anticipated $367.89 million. This was an increase of 14.2% year-over-year, although it marked a decline from the previous year’s EPS of $0.77. For fiscal year 2026, e.l.f. Beauty has projected EPS guidance between $2.800 and $2.850, while analysts forecast an average EPS of $2.38 for the current year.
Institutional activity around e.l.f. Beauty has also been notable. In the second quarter, Marshall Wace LLP acquired a stake valued at approximately $118.06 million, while Atreides Management LP and Man Group plc made investments of $61.48 million and $52.31 million, respectively. Additionally, Woodline Partners LP and Swedbank AB also increased their holdings, with Swedbank boosting its stake by 42.6% during the first quarter.
The significant involvement of institutional investors indicates a strong interest in e.l.f. Beauty, with hedge funds and other institutions owning approximately 92.44% of the stock.
Founded in 2004 and headquartered in Oakland, California, e.l.f. Beauty is recognized for its range of affordable cosmetics, including makeup and skincare products. The company has established a direct-to-consumer model through its e-commerce platform while partnering with major retailers such as Target, Walmart, Ulta Beauty, and Amazon.
As the company navigates its financial landscape, continued monitoring of analyst ratings and institutional investments will be crucial for stakeholders and potential investors.
