2024-07-15 08:15:13 ET
Summary
- Olaplex shares have fallen 93% from IPO price, but the company has strong fundamentals with high free cash flow margins.
- Sales decreased 35% in FY2023, leading to a big drop in share price. This drop was justified, but I think sales will recover.
- There are indications that Olaplex's products remain relevant and with a more favorable economic environment, it should regain its growth.
- With conservative estimates, Olaplex shares could double in the next 12 months, offering potential high returns for investors.
Investment Thesis
Olaplex ( OLPX ) shares have fallen 93% from their IPO price. Although this usually happens in the typical company with a mediocre product that is not profitable, this isn't the case of Olaplex, which has free cash flow margins close to 40% and is currently trading at less than 12 times forward earnings....
Read the full article on Seeking Alpha
For further details see:
Olaplex: When Growth Becomes A Value Turnaround