elf Beauty (ELF) Jumps 9.7% as Analyst Grows More Bullish Despite Product Price Increase

We recently published Wall Street Shockers: 10 Stocks on Fire. e.l.f. Beauty, Inc. (NYSE:ELF) is one of the best-performing stocks on Monday.

e.l.f Beauty saw its share prices jump by 9.73 percent on Monday to finish at $111.67 apiece as investors took heart from an investment firm’s bullish rating and price target upgrade for its stock.

In a market note, Morgan Stanley upgraded e.l.f. Beauty, Inc. (NYSE:ELF) to “overweight” from “equal weight” previously, alongside a higher price target of $134 versus $114 prior. The new price suggested a 20-percent upside potential from its latest closing price.

Last August 1, e.l.f. Beauty, Inc. (NYSE:ELF) slapped a 14-percent price hike on its products, saying that it would assess how consumers would respond.

“It will take a couple of weeks for that to fully roll out within retail. And so that is something that we’re watching for,” e.l.f. Beauty, Inc. (NYSE:ELF) CFO Mandy Fields has said.

However, Morgan Stanley posted a more optimistic outlook, saying that consumers typically do not tend to be especially sensitive to price increases “given the relative importance of beauty products to consumers.”

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Additionally, it underscored that e.l.f. Beauty, Inc.’s (NYSE:ELF) products are relatively cheaper compared with those from its counterparts, and there is less opportunity for consumers to find more affordable substitutes.