Honest Company's Underlying Brand Demand & New CEO's Experience Should Provide Substantial Benefits, Says Analyst

Telsey Advisory Group analyst Dana Telsey reiterated an Outperform rating on the shares of The Honest Company Inc HNST with a price target of $6.00.
Yesterday, the company announced the appointment of CPG industry veteran Carla Vernón as its new Chief Executive Officer, effective January 9, 2023.
Vernón will replace Nick Vlahos, who served in the role for nearly six years and will remain on the company's Board of Directors.
Most recently, Vernón was the Vice President of Consumables Categories at Amazon.Com, Inc. AMZN, leading babycare, household products, food, beverages, health and wellness, and beauty, and driving double-digit growth at the Amazon online stores.
At Amazon, Vernón worked closely with HNST and its senior leadership team to support its Honest Lifestyle Platform, the analyst noted.
The analyst believes Vernón's experience, especially in e-commerce, should provide substantial benefits to Honest as it maneuvers a challenging macro and supply chain environment while focusing on driving profitable growth.
In the analyst's view, with a growing retail distribution network and a strong e-commerce presence, Vernón can leverage her experience to support topline growth while improving the bottom line.
The analyst specified that the brand is well-positioned in an attractive health and wellness category, appealing to the modern conscious consumer with a strong digital presence.
Price Action: HNST shares are trading higher by 6.31% at $3.20 on the last check Wednesday.
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