NWL - e.l.f. Beauty Will Maintain Growth Momentum Despite Tailwinds - This Analyst Upgrades Stock Ahead Of Q2 | Benzinga
Raymond James analyst Olivia Tong revised ratings on a few U.S. beauty, personal care & household products companies ahead of their Q3 FY23 results.
In Q3, the analyst expects quality to be more mixed vs. H1 FY23 on pricing laps, consumer ability to remain resilient, underwhelming recovery in China, higher marketing spending, and foreign currency translation headwinds.
Nevertheless, the analyst sees strong emerging markets, better-than-expected European operations, lower input cost pressures, and higher brand support as tailwinds.
The analyst notes that the Beauty/Beauty Retail, HPC, and Home Goods sectors (especially Beauty) have underperformed the market on concerns related to growth sustainability.
Consequently, Tong upgraded e.l.f. Beauty Inc (NYSE: ELF) to Strong Buy from Outperform at a lowered price target of $140 from $145. The analyst expects ...