e.l.f. Beauty Stock Climbs Following European Expansion: What Investors Need to Know
Shares of e.l.f. Beauty climbed Monday afternoon. Here's what investors need to know.
Stocks · News reference
UBS analyst Peter Grom maintains e.l.f. Beauty (NYSE:ELF) with a Neutral and raises the price target from $80 to $89.
Reference Details
Poisar stores the source's headline, summary and market tags for reference. Reporting and full article text remain with the original publisher.
Keep reading
Shares of e.l.f. Beauty climbed Monday afternoon. Here's what investors need to know.
e.l.f. Beauty's stock has declined 53% from its March 2024 all-time high of $221.83 to around $105, driven by slowing revenue growth, higher operating expenses, and supply chain challenges. While the stock appears cheap at 17x adjusted EBITDA, the company's high-growth days are over as it matures, with analysts projecting only 20% revenue growth in fiscal 2027 and 8% in fiscal 2028. The sell-off may not be an overreaction given the company's deceleration and lack of catalysts for near-term appreciation.
The article compares Amazon.com and e.l.f. Beauty as high-growth consumer stocks. Amazon generates $716.9B in revenue with a 10.8% net margin and $7.7B free cash flow, while e.l.f. Beauty shows faster growth at 24.6% year-over-year with $1.6B revenue but only 1.6% net margin. The author recommends Amazon due to its attractive forward P/E ratio (20.7x vs 29.3x), strong AWS growth (37% YoY), and AI infrastructure investments, despite e.l.f. Beauty's higher growth rate.