2023-03-31 07:15:03 ET
Morgan Stanley reiterates an Overweight rating on e.l.f. Beauty ( NYSE: ELF ) and calls it the preferred SMID cap name in the sector.
Analyst Eric Serotta said accelerating U.S. scanner data highlights near-term upside for ELF in comparision to the consensus marks.
For the longer-term, Morgan Stanley expects a beauty category rebound and pronounced ELF share gains to continue driven. The share gains are seen being driven by marketing spending, ELF's more effective digital marketing acumen, innovation, traction with younger consumers, white-space opportunities, incremental shelf space gains, and a near-term boost from consumer trade-down to ELF's lower priced portfolio amid the rough macroeconomic backdrop.
Serotta and team raise revenue estimates for FY23 by 1%, for FY24 by 5%, and for FY25 by 10%. The price target on ELF was set at $94.00.
Shares of ELF rose 0.46% premarket to $79.28. ELF trades above its 50-day, 100-day, and 200-day moving averages.
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e.l.f. Beauty attracts overweight rating from Morgan Stanley