By Sam Boughedda
DA Davidson remains bullish on e.l.f. Beauty, Inc. (NYSE:ELF), maintaining a Buy rating on the stock and upping its price target to $91 from $77 per share in a note to clients on Wednesday.
Analysts told investors in a note that ELF's U.S.-tracked channel POS accelerated again in February.
"According to IRI data, ELF's POS was up ~70% in January and February," the analysts wrote. "In the four weeks ended February 26th, growth actually accelerated further on a 2-year stacked basis, to +93.5% from +83.4% in January."
They added that ELF continues to gain share across all four tracked categories (eye, lip, facial, skincare, and accessories). In addition, they said these categories have all shown accelerated growth in the last two months, with the facial category accelerating to over 30% year-over-year growth from growth in the teens.
"We are raising our F1H24E sales to +20%-22% from +10% and our FY24E sales to +15% from +7% (consensus is +13.6% Y/Y). We are raising our FY24E EBITDA to $134M from $123M, higher than consensus of $133M (+16.8% Y/Y)," said the analysts.