OLPX - Olaplex cut to Hold as Cowen awaits business reset

2023-03-16 08:41:23 ET

Olaplex ( NASDAQ: OLPX ) shares fell sharply before the bell on Thursday as Cowen downgraded the stock.

The team at Cowen moved to a Market Perform rating from Outperform as a turnaround for the hair care company looks stalled. The team also cut their price target to $4.50 from $10 alongside the downgrade.

“After last October’s sharp decline, we were looking for signs of the business rebounding and new products garnering interests. Further, given inexpensive valuation relative to its growth and margin profile and tempered expectations, we thought 3Q was a trough,” the downgrade note lamented. “But, trends got worse and management’s FY23 guide disappointed.”

As such, the team deemed it an appropriate time to step to the sidelines and await evidence that management's turn-around strategies can bear fruit. Shares of Olaplex ( OLPX ) plunged 3.99% in premarket trading on Thursday.

Read more on the company’s latest earnings results .

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