© Reuters More growth ahead for e.l.f. Beauty (ELF), claims BofA
BofA analysts reiterated a Buy rating on e.l.f. Beauty, Inc. (NYSE:) and raised the firm’s price target on the stock to $120 from $105 in a note to clients on Tuesday.
The analysts stated ELF “continues to glow,” and while it has outperformed, they still see further growth ahead.
ELF shares are up more than 92% in 2023 and well over 300% in the last 12 months. It has added a further 3% so far in Tuesday’s session, climbing to $108.09.
“ELF is now the number-3 mass cosmetics brand vs. number-5 a year ago, at 9.5% market share, according to Nielsen. Moving ahead, we expect ELF to benefit from expanded shelf space (now 12 feet at , 8 feet at , and 7 feet in ), with further gains likely at Ulta, , and in fall 2023,” wrote the analysts.
“In addition, ELF has been successful in increasing productivity, growing its Ulta business by 70% in F23 without incremental shelf space.”
The analysts also said that they see the company’s marketing spend as a method to maintain and gain additional market share.
“For F24, we raise our net sales estimate to $734mm, +27% y/y vs. +25% prior, while we maintain our adj. EBITDA estimate at $160mm. ELF’s F24 guidance calls for net sales of $705-$720mm, or +22-24% y/y, gross margin of +100bps y/y, and adj. EBITDA of $144.5m-$147.5mm,” they added.