Canaccord Genuity said that E.l.f. Beauty stock will continue to grow, which caused it to continue to rise sharply on Tuesday.
Analyst Susan Anderson raised her price target for e.l.f. from $214 to $250, which is a 28% rise from Monday’s closing price of the stock. Anderson also gave her Buy rating again.
Anderson wrote in a research note, “Current tracked sales data look great; untracked channel sales have been growing at triple-digit rates; and ELF is still waiting for the boost from major shelf space additions planned for this summer.” “We think this sets up ELF for another year of beats and raises.”
The S&P 500 went up 0.3% on Tuesday, while e.l.f. stock rose 7.6% to $210.21. The stock was only down 3.4% from March 1, when it hit an all-time high of $217.40.
This year, E.l.f. stock has been on fire, rising 44% so far in 2024 and 96% in the last year. Cheap makeup is sold by the company, which reaches its main customers, who are young people, through social media marketing. People are still buying e.l.f. foundations and lipsticks, even though inflation and high interest rates make it hard for them to spend money.
E.l.f. is also working hard to grow its line of skin care products. In August 2023, the company bought the skin care brand Naturium. They also want to expand their e.l.f. SKIN line.
“We think there is still a lot of room to grow,” Anderson said. “Management has also talked about Naturium’s plans to expand into Ulta starting this summer.”
