e.l.f. Beauty Acquires Rhode, Projected to Drive $200 Million Sales Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Source: Yahoo Finance
- Market Share Growth: e.l.f. Beauty has successfully captured market share from competitors over the past few years through a fast-follower strategy and influencer marketing, particularly gaining significant shelf space at retailers like Target and Ulta Beauty.
- Acquisition of Rhode: e.l.f. recently acquired the premium skincare brand Rhode, founded by Hailey Bieber, which achieved over $200 million in sales in less than three years, expected to provide new growth momentum for e.l.f.
- Sales Channel Expansion: e.l.f. plans to introduce the Rhode brand to LVMH's Sephora stores, with approximately $10 million in products sold in the first two days in the U.S. and Canada, indicating strong market demand.
- Attractive Investment Timing: With e.l.f.'s stock down about 40% from its highs, the current forward P/E ratio stands at 26.5 and a PEG ratio below 0.5, suggesting the stock is attractive for investors considering its growth potential and valuation.
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Analyst Views on ELF
Wall Street analysts forecast ELF stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ELF is 117.50 USD with a low forecast of 85.00 USD and a high forecast of 136.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
10 Buy
3 Hold
0 Sell
Strong Buy
Current: 85.030
Low
85.00
Averages
117.50
High
136.00
Current: 85.030
Low
85.00
Averages
117.50
High
136.00
About ELF
e.l.f. Beauty, Inc. is a multi-brand beauty company. The Company offers inclusive, accessible, clean, vegan, and cruelty-free cosmetics and skincare products. The Company's family of brands includes e.l.f. Cosmetics, e.l.f. SKIN, Naturium, Well People, Keys Soulcare, and rhode. Its e.l.f. SKIN is an ingredient-focused, dermatologist-developed formulas for every eye, lip and face. The Company operates across beauty categories including eye, lip, and face makeup, beauty tools and accessories, and skincare products. Its color cosmetics and skin care products are broadly sold through food, drug, and mass channels, as well as through department stores and direct and specialty channels. The Company sells its products with retailers in the United States, as well as internationally. It also sells its products online through its own direct e-commerce channels, as well as through other e-commerce Websites.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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