E.l.f. Beauty Should Continue to Gain Market Share, Analyst Says. Buy the Stock.

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Jefferies analyst Ashley Helgans upgraded shares of e.l.f. to Buy from Hold.

E.l.f. Beauty stock was gaining on Friday after Jefferies noted several growth catalysts ahead for the cosmetics company.

In Friday’s premarket trading, shares of e.l.f. were up 2.4%, to $98.90. Coming into the session, the stock had climbed 75% this year. The beauty category has remained resilient despite consumer weakness. This strength was evident in the company’s fiscal first-quarter financial results in August. E.l.f. posted earnings and revenue far above Wall Street expectations and raised its fiscal-year revenue outlook.

Also in August, e.l.f. acquired skin care brand Naturium. Helgans noted that this move was a positive because the company relies on bringing new items to the market to keep customers interested in the quickly evolving makeup industry.

 

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