Raymond James Hikes e.l.f. Beauty (ELF) Price Target, Maintains Strong Buy Rating

On June 2, Raymond James analysts raised e.l.f. Beauty, Inc. (NYSE:ELF) stock price target to $130 from $105 while maintaining a ‘Strong Buy’ rating. The adjustment follows a recent webinar whereby management touted growth strategies and a recent acquisition. The analysts remain optimistic about the company’s prospects amid innovative strategy and expansion plans.

Raymond James Hikes e.l.f. Beauty Price Target to $130

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The bullish stance follows e.l.f. Beauty management’s affirming focus on pursuing domestic and international expansion. It has also announced plans to address potential tariff changes that could affect the company’s operations. The company boasts a solid gross profit margin of 71% while operating with moderate debt.

The recent acquisition of Rhode is key to accelerating top-line growth. Raymond James expects the company to maintain strong growth in its first quarter of fiscal 2026 compared to Q4 of fiscal 2025. Expansion into new retail spaces is also seen as one of the catalysts that should accelerate top-line growth.

Raymond James analysts are also banking on continued international expansion in the second half of the fiscal year to enhance the growth trajectory. Despite softness in the beauty category, the analysts expect the company to outperform its peers. Consequently, they have raised their non-GAAP earnings per share estimate for fiscal year 2026 to $3.75. The new estimate factors in the impact of Rhode’s acquisition

e.l.f. Beauty, Inc. provides cosmetic and skin care products worldwide. The company offers eye, lip, face, paw, and skin care products. It also provides products under the e.l.f. Cosmetics, e.l.f. Skin, Well People, Naturium, and Keys Soulcare brand names.

While we acknowledge the potential of e.l.f. Beauty, Inc. (NYSE: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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Disclosure: None.