Morgan Stanley Lifts Price Target on elf Beauty (ELF), Keeps Hold Rating

On May 29, Dara Mohsenian from Morgan Stanley maintained a Hold rating on e.l.f. Beauty, Inc. (NYSE:ELF) while raising the price target significantly from $70 to $105. The update reflects cautious optimism following the company’s acquisition of Rhode, a lifestyle beauty brand founded by Hailey Bieber.

Morgan Stanley Raised the Price Target on elf Beauty (ELF), Kept a Hold Rating on the Stock

A close up of the lip and eye products from the company on a model in a fashion and beauty shoot.

On May 28, e.l.f. Beauty, Inc. (NYSE:ELF) announced its definitive agreement to acquire Rhode for $1 billion. Rhode is a fast-growing and multi-category brand known for its skin-focused products. The company found a like-minded disruptor in Rhode and the acquisition will add further diversification to the portfolio, said the chairman of e.l.f Beauty.

Analyst Mohsenian noted the acquisition is seen as a positive move by e.l.f. Beauty, Inc. (NYSE:ELF), potentially boosting its short-term growth prospects. However, the analyst remains cautious about the long-term sustainability of this growth. The raised price target reflects enthusiasm regarding the latest acquisition, whereas the hold rating depicts caution regarding the potential tariff reductions and volatility in the business.

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