Elf Beauty shares surge on positive comments from Raymond James

Elf Beauty's stock experienced a significant uptick, climbing as much as 8.2% following positive remarks from sell-side analysts at Raymond James.

The financial services firm hosted a meeting with Elf Beauty's CEO, CFO, and head of investor relations on August 16, which left the analysts with a "very bullish" perspective on the company's future.

The meeting reinforced Raymond James' confidence in Elf Beauty's potential to increase sales and profits at a rate surpassing that of its competitors and beyond the company's own near-term projections.

The analysts at Raymond James have set their estimates higher than the management's expected ranges, indicating a strong belief in the company's growth trajectory.

Raymond James highlighted several of Elf Beauty's strengths, such as its rapid product development and launch capabilities, expansion opportunities in various categories, shelf space, and geographical markets.

Moreover, the firm emphasized Elf Beauty's robust relationship with its customers, bolstered by effective digital engagement strategies.

Despite a 27% decline in Elf Beauty's stock since its peak in June up to the close of the market on the previous Friday, Raymond James sees a buying opportunity. The firm maintains a "strong buy" rating on the shares, with a price target (PT) of $235.

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Source: Investing.com