OLPX Should I Buy
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Olaplex Holdings Inc (OLPX) is not a good buy for a beginner, long-term investor at this time. The stock is being acquired by Henkel for $2.06 per share, which limits its upside potential. Additionally, the stock is currently trading near the acquisition price, and there are no significant trading signals or catalysts to suggest further growth opportunities. Holding the stock or exploring other investment opportunities may be more suitable.
The stock is in an overbought condition with RSI_6 at 90.232. The MACD histogram is positive at 0.0502, indicating bullish momentum. Moving averages are bullish (SMA_5 > SMA_20 > SMA_200), and the stock is trading near its resistance level of R2: 2.03. However, the acquisition news caps further upside potential.
Henkel's acquisition of Olaplex for $2.06 per share in cash provides a clear exit strategy for current shareholders. The acquisition has been unanimously approved by Olaplex's board, ensuring transaction certainty.
Ademi LLP's investigation into potential breaches of fiduciary duty related to the acquisition could create uncertainty. Analysts have downgraded the stock following the acquisition announcement, and the stock's upside is capped at $2.06 due to the acquisition price.
In Q4 2025, Olaplex reported a 4.35% YoY increase in revenue to $105.12M and a 48.89% YoY improvement in net income to -$13.1M. EPS improved to -0.02, up 100% YoY. However, gross margin dropped slightly to 59.65%, down -1.03% YoY, indicating some operational challenges.
Analysts have downgraded the stock following the acquisition announcement. Canaccord downgraded the stock to Hold with a price target of $2. Evercore ISI lowered its price target to $2.50 from $4, and Barclays raised its target to $1.75 from $1.25, citing concerns about company fundamentals and potential headwinds in 2026.
