Truist Increased the Price Target for e.l.f. Beauty, Inc. (ELF)

Truist Securities reiterated its Buy rating on e.l.f. Beauty, Inc. (NYSE:ELF) shares, raising its price objective from $75 to $125.

Truist increased the price goal for Elf Beauty by $50

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

The revision comes after the company’s improved financial outlook and solid Q4 earnings performance. After revising its FY26 projections, Truist now forecasts $1.575 billion in sales and $332 million in EBITDA, up from the earlier projections of $1.466 billion and $327 million. Furthermore, the firm’s confidence in e.l.f. Beauty, Inc. (NYSE:ELF)’s sustained development trajectory was reflected in the raised FY27 expectations.

After Q4 earnings above market projections, the latest estimates indicate an upward revision in long-term expectations.

Recently, e.l.f. Beauty, Inc. (NYSE:ELF) strengthened its portfolio by paying $1 billion to purchase Rhode, a celebrity beauty brand. The company has generated strong sentiment due to its industry-leading gross margins of 71.24%, $6.30 billion market capitalization, and 28.28% revenue growth over the last 12 months.

Targets have also been raised by other firms, such as TD Cowen, Jefferies, Morgan Stanley, and Piper Sandler, with values ranging from $105 to $130. Analysts view e.l.f. Beauty, Inc. (NYSE:ELF)’s tactical moves and fundamentals as drivers for further rise, notwithstanding the macro uncertainty of the near future.

While we acknowledge the potential of ELF to grow, 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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