Piper Sandler Lifts e.l.f Beauty (ELF) Price Target, Maintains Overweight Rating

e.l.f Beauty, Inc. (NYSE:ELF) received a significant price target bump from Piper Sandler on May 29, with the firm raising its forecast to $109 from $81 while maintaining an Overweight rating on the stock. The update follows a strong fourth-quarter performance and a headline-making $1 billion acquisition of Rhode Skincare brand that has stirred investor interest.

In a note to clients, Piper Sandler praised the company’s consistent execution and affirmed its bullish stance. Despite the major acquisition, the firm said it sees little reason to revise forward-looking targets, suggesting confidence in management’s strategic direction and operational discipline.

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

“ELF continues to deliver, and we remain constructive on the long-term story,” the note stated. “The recent developments only strengthen the investment case.” One detail that stood out was management’s decision not to issue guidance following the acquisition—an unusual move that adds a layer of intrigue but doesn’t shake Piper’s confidence. The firm views the lack of near-term visibility as a calculated risk rather than a red flag.

The $1 billion deal, while sizable, is seen as a bold step that could expand e.l.f Beauty, Inc. (NYSE:ELF)’s footprint and competitive positioning in the beauty market. Piper believes the company is emerging as a clear winner among value-focused beauty brands with strong consumer appeal and disciplined growth. With the raised price target, Piper signals continued enthusiasm, suggesting the market may be underestimating Elf’s ability to scale smartly and surprise to the upside.

While we acknowledge the potential of ELF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ELF and that has 100x upside potential, check out our report about this cheapest AI stock.

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