Elf Beauty Outperforms Peers: Expect 16% Sales Growth In Fiscal 2023, Analyst Says

Elf Beauty Inc. ELF will continue gaining share in the mass beauty market, despite its recent price increases, according to Bank of America Securities.

The Analyst: Anna Lizzu initiated coverage of Elf Beauty with a Buy rating and a price target of $45. The Oakland, California-based company has continued to innovate and launch quality products at affordable prices, she explained.

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The Thesis: “ELF has grown net sales y/y for 13 consecutive quarters, despite COVID-related disruptions,” she said.

Elf Beauty will generate 16% sales growth in fiscal 2023, “bolstered by ELF’s opportunity to increase shelf space and distribution with an innovation pipeline of new products," she added.

Despite significantly raising prices on some product offerings, “the company continues to see market share outperformance vs. peers,” Lizzu wrote. “ELF has a scalable supply chain model, which provides an operational advantage by bringing together cost, quality, and speed."

ELF Price Action: Shares of Elf Beauty had risen by 1.41% to $38.74 at the time of writing Wednesday.