2024-07-02 09:05:33 ET
Summary
- e.l.f. Beauty is an American cosmetics brand, offering a wide range of products. According to Nielsen, the company is the market leader in several categories.
- e.l.f. Beauty has seen significant financial improvements, particularly in the last two years. The company is #1 in terms of units and #2 in terms of $ spent on cosmetics.
- Despite high penetration in the US and Canada, e.l.f. Beauty has room for double-digit sales growth through international expansion.
- We expect EBITDA growth of 27% per year in our base case scenario.
- However, forward growth rates don’t justify the current market valuation. We believe that the price has to cool down, and we set a SELL rating with a target price of $177.
Investment thesis
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For further details see:
e.l.f. Beauty: The Market Pays Too Much For Cheap Cosmetics