ELF stock surged Monday after shares of the cosmetic company ELF Beauty received an upbeat note from analysts at DA Davidson.
DA Davidson on Monday added ELF stock to its "Best-of-Breed Bison" list, which includes the "best-in-class" companies with sustainable moats and favorable risk vs. reward dynamics, The Fly reported.
ELF Beauty has a historic compound annual growth rate of over 25% for sales the last five years. Meanwhile, sales have increased year over year the last 21 quarters, with double-digit gains in 15 of those quarters thanks to "steady market share gains," the firm wrote. The ELF Beauty brand has further room to run after gaining more shelf space at Target and Walmart. DA Davidson added that ELF leads cosmetic sales at Target despite not being the top brand in terms of shelf space.
The firm maintained a buy rating and 220 price target on ELF stock.
The note comes after Elf Beauty on May 22 posted a major beat for Q4 results. ELF Beauty earnings jumped 26%, compared to estimates of a 21% decline. Sales spiked 71%, outpacing views of 56% growth.
ELF Beauty guided 2025 earnings to range from $3.20 to $3.25 per share, rising slightly from $3.18 in 2024. The company sees revenue ranging from $1.23 billion to $1.25 billion, climbing from $1.024 billion last year.
FactSet predicts 2025 earnings increase to $3.40 per share on $1.28 billion in sales.
ELF Stock
ELF stock rallied 5.2% Monday.
Shares are consolidating with a 221.83 buy point, matching ELF Beauty's record high from March 4.
Cosmetics stocks sold off in early April following cautious comments from Ulta Beauty executives during an investor conference.
Still, ELF stock spiked 36% so far this year.
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