By Sabela Ojea
Shares of e.l.f. Beauty climbed after Raymond James upgraded its recommendation on the stock to buy from outperform, citing the company’s sustainable expansion plans.
At 1:07 p.m. EDT on Monday, shares were up 5.5% at $107.50. The stock has surged 94% since the year started, and 158% in the past 12 months.
The selloff in the cosmetics firm’s shares is most likely overdone, and it can sustain momentum well ahead of its peers because of its robust pace of innovation, Raymond James analysts said in a research note.
“Overall, Elf continues to deserve a material premium to peers due to the scarcity of an asset growing sales and profit as fast as Elf,” analysts said, as they also cut their target price to $140 from $145 previously.
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