e.l.f. Beauty Inc.(ELF:NYE) Raymond James Capital lowers the target price to $27

STA Research
by: STA Research

Raymond James Capital maintains e.l.f. Beauty Inc. with an Outperform rating and lowers the target price to $27 from $33 on the company’s stock.

Based on the e.l.f. Beauty Inc stock forecasts from 4 analysts, the average analyst target price for e.l.f. Beauty Inc is USD 33.50 over the next 12 months. e.l.f. Beauty Inc’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of e.l.f. Beauty Inc is Slightly Bearish, which is based on 4 positive signals and 9 negative signals. At the last closing, e.l.f. Beauty Inc’s stock price was USD 22.15e.l.f. Beauty Inc’s stock price has changed by +2.45% over the past week, -9.15% over the past month and -22.28% over the last year.

What we like:

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

Superior Revenue Growth

This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.

What we don’t like:

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor return on equity

The company management has delivered below median return on equity in the most recent 4 quarters compared to its peers.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

 

 

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