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Elf beauty (NYSE:ELF) Canaccord Genuity on Tuesday raised its price target on the retailer as it sees growth opportunities this year that will lead to top and earnings growth.
Notably, analyst Susan Anderson highlighted that untracked channel sales have been elf Beauty is growing at a triple-digit rate (Very low frequency), the company is still awaiting the benefits of major shelf space additions planned this summer. Anderson and her team believe ELF’s guidance is conservative, estimating sales could increase by more than 40%, assuming currently tracked channel sales remain stable and the company sees some normalization in its direct-to-consumer and international pipelines.
“Overall, we continue to believe ELF is in the early stages of its growth story, as the brand still lags behind legacy brands in terms of brand recognition and even shelf space (depending on access),” Anderson concluded.
Canaccord Genuity raised its price target on ELF from $214 to $250 with a Buy rating.
Elf Beauty (ELF) shares rise 6.89% It was trading at $208.87 late in the morning. The stock was trading at its highest level since early March. ELF is the second-highest gainer among 30 stocks in the Home & Personal Products industry so far this year and has posted the fourth-highest sales growth over the past five years.
