e.l.f. Beauty, Inc. (NYSE:ELF) shares were started with a Neutral rating and $185 per share price target at Baird on Tuesday, despite the firm noting the company's positive fundamentals.
Analysts at the firm are bullish on e.l.f. Beauty's fundamentals, but they are remaining patient based on the valuation.
"Incredible value, compelling product innovation, and marketing muscle have catapulted e.l.f. Beauty to a leading player in the mass cosmetics market and we see plenty of runway ahead as it continues to execute this playbook and grow distribution," analysts declared.
They described ELF's strength as "in-your-face brand momentum," adding that its strong innovation discipline and fast development timeline allow the company to be a 'first-to-mass' mover, "taking inspiration from successful prestige concepts and reimagining them."
However, the firm's near-term enthusiasm is tempered by the company's current valuation, which they say "leaves little room for error," with the valuation "likely already incorporating some upside to Street estimates."