Goldman Sachs Reiterates Buy Rating on e.l.f. Beauty (ELF)

Goldman Sachs analyst Patty Kanada reiterated a Buy rating and $120.00 price target on e.l.f. Beauty (NYSE: ELF).

The analyst comments "Our View - ELF reported better than expected FQ4 results as fears of slowing end-market demand and tariffs weighed on sentiment. Despite this, net sales growth of +3.6% were better than expected and above mgmt's guidance. Overall, the company's results were overshadowed by the company's announced plan to acquire rhode, a prestige beauty brand founded by Hailey Bieber, for $1B (inclusive of $200M potential earnout consideration). We view this acquisition as a strategic positive as it further expands ELF into skincare with a prestige brand, and diversifies its customer base. Given the wide range of potential outcomes related to tariffs, mgmt did not provide FY26 guidance. However, mgmt noted several callouts for FQ1, including consumption trends quarter-to-date are better than what the company saw in FQ4, and its trends are well ahead of the category. Further, mgmt's announced price increase should support top-line growth starting in FQ2. However, during the month of April and into May, tariff rates on imports from China were elevated at a total level of 170%, which will weigh on gross margins in FQ1, as mgmt brought in shipments. Overall, we expect tariffs to weigh on results and therefore, while we are increasing our top-line estimates, we lower our FY26-FY28 EPS estimates. We maintain our Buy rating and our $120 price target."

For an analyst ratings summary and ratings history on e.l.f. Beauty click here. For more ratings news on e.l.f. Beauty click here.

Shares of e.l.f. Beauty closed at $90.50 yesterday.

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