LRLCF - Olaplex: Macro Headwinds Or Fundamental Problems? (Rating Downgrade)

Summary

• Olaplex can afford to significantly increase its marketing costs because the company has abnormally high margins.
• The company's portfolio includes only 14 products, and management plans to release several new products annually.
• It seems that the market has already reflected all the worst in the stock price.
• Olaplex trades at a discount to peers, although the company significantly outperforms its industry neighbors in terms of growth and margins.

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