e.l.f. Beauty (ELF) Stock Forecast & Price Target

e.l.f. Beauty is experiencing a strong increase in sales and growth potential from its successful brand Rhode, which has surpassed $390 million in sales in FY27 and has the opportunity to expand into 19 European markets. For FY27, the Street is expecting strong sales and earnings growth, but our outlook is cautious and below the consensus due to potential challenges in the UK and a lack of visibility on core Elf's performance, resulting in a below-consensus EPS estimate of $3.30 and a slightly lower price target of $50 per share based on 10x EV/EBITDA.

e.l.f. Beauty is experiencing significant growth in its Rhode brand, but its core brand is struggling with softness in spring innovation and a lack of consumer response to its price increase. Additionally, the company's questionable decision to lower prices in response to lack of demand may prove to be too reactionary and harm its profitability in the future. The brand's innovation pipeline looks promising, but its marketing efforts may not be effectively driving sales.