e.l.f Beauty ( NYSE: ELF ) shares rose sharply on Tuesday after Piper Sandler analyst Korinne Wolfmeyer moved from the sidelines to a Buy-equivalent rating.
The firm’s “Fall Teen Survey” reflected a strong position for the brand, with many teens stating a preference for its products. Wolfmeyer also noted that the positive assessment of the brand was found across income groups.
“Results from our survey give US greater comfort in demand persisting,” Wolfmeyer told clients on Tuesday. “With growing traction amongst the upper income groups as well as increasing emphasis on the digital channel (which has resonated quite well with Gen Z), we think ELF can not only continue growing its top line in the double digits, but also take advantage of margin expansion opportunities and reach 20%+ EBITDA% over the coming years.”
Alongside the upgrade from Neutral to Overweight, she took her price target to $46 from a prior $35. Shares of the California-based cosmetics company rose 3.23% prior to Tuesday’s market open.
Read more on Bank of America’s recent “Buy” initiation on the name .
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e.l.f Beauty stock boosted as Piper Sandler moves to bullish stance