e.l.f. Beauty stock retains buy rating with $220 target

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e.l.f. Beauty stock retains buy rating with $220 target
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On Friday, e.l.f. Beauty (NYSE: ELF ) maintained its Buy rating and a $220.00 price target from DA Davidson, following the company's presentation at the CAGNY Conference. The cosmetics firm has reached a new milestone with its share at Target (NYSE:TGT) surpassing 20% based on recent point-of-sale data. This achievement marks e.l.f. Beauty's first-time attendance at the conference, signaling its significant presence in the consumer packaged goods industry.

The company's leadership discussed several key growth drivers, including expansions in U.S. color cosmetics, skincare, and international markets. With e.l.f. Beauty's current 10% stake in the U.S. mass color segment, the CEO has referenced the brand's 18% share at Target when discussing long-term potential.

The recent data indicating over 20% share at Target highlights e.l.f.'s competitive edge against leading brands like Maybelline, which holds a 15%-16% share across various retailers.

DA Davidson's reiterated price target is based on a 38 times multiple of the company's estimated CY25E EBITDA of $325 million. The firm cites e.l.f. Beauty's impressive track record, having been the top-performing stock on the NYSE over the past five years.

Analysts at DA Davidson suggest that e.l.f. Beauty has the potential to double its sales going forward, reinforcing the company's strong position in the beauty industry.

Investors are keeping a close eye on e.l.f. Beauty's stock performance, which has shown robust growth and resilience in a competitive sector. The company's strategic focus on key growth areas and its ability to capture a significant share of the market at major retailers like Target contribute to its optimistic outlook.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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