On Tuesday, Truist Securities adjusted its outlook on e.l.f. Beauty (NYSE: NYSE:ELF), increasing the stock's price target from $200.00 to $210.00 while sustaining a Buy rating on the shares. The revision follows a detailed analysis of the company's future financial performance expectations.
The firm has updated its forecasts for e.l.f. Beauty's sales and adjusted EBITDA for fiscal years 2025 and 2026. The new estimates for FY25 are now set at $1.272 billion in sales and an adjusted EBITDA of $290.4 million, up from the previous figures of $1.210 billion in sales and $283.8 million in adjusted EBITDA. For FY26, sales are projected to reach $1.425 billion with an adjusted EBITDA of $333.0 million, a slight modification from the earlier sales estimate of $1.356 billion and adjusted EBITDA of $335.1 million.
The adjustment in the price target to $210 reflects a positive outlook on the beauty company's growth trajectory. The firm's decision to maintain a Buy rating indicates a continued endorsement of e.l.f. Beauty's stock for investors.
The updated financial estimates and the subsequent price target raise highlight the firm's confidence in e.l.f. Beauty's ability to increase its sales and profitability over the next few years. The new targets are based on the firm's latest analysis and expectations for the company's performance.
InvestingPro Insights
As e.l.f. Beauty (NYSE: ELF) garners a revised price target and a sustained Buy rating, the InvestingPro data provides a deeper dive into the company's financial health. With a market capitalization of $10.64 billion and a high P/E ratio of 81.7, reflecting a premium on near-term earnings growth, e.l.f. Beauty is trading at a dynamic juncture. The company's revenue has seen a remarkable increase of 76.89% over the last twelve months as of Q4 2024, signaling strong sales momentum. Additionally, e.l.f. Beauty boasts an impressive gross profit margin of 70.72%, which may further justify the optimism surrounding the company's profitability.
InvestingPro Tips indicate that analysts expect sales growth in the current year, complementing Truist Securities' positive sales projections for FY25 and FY26. Moreover, the company's significant return over the last week of 20.41% and a 1 Year Price Total Return of 89.0% underscore its robust stock performance. These returns, alongside a fair value estimate of $210 by analysts and a more conservative InvestingPro Fair Value of $127.4, suggest that investors should weigh the varying perspectives on the company's valuation.
For investors seeking more nuanced insights, InvestingPro offers additional tips, including 11 analysts having revised their earnings downwards for the upcoming period, which might warrant closer scrutiny. To explore these tips and more, readers can visit https://www.investing.com/pro/ELF and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking access to a total of 21 InvestingPro Tips for e.l.f. Beauty.
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