Elf Beauty (ELF, Financial) has announced its decision to acquire the prestigious beauty brand Rhode, valuing the deal at $1 billion. This acquisition reflects Elf Beauty’s strategic efforts to strengthen its presence in the high-end cosmetics market. Industry insiders note that, like Elf Beauty’s existing brand Milk Makeup, Rhode is positioned within the luxury cosmetics sector and is well-regarded for its vibrant social media engagement.
The acquisition underscores the potential undervaluation of Waldencast, which owns Milk Makeup, suggesting it could be worth more when considering each of its brand components separately. With the beauty industry's promising growth prospects, the integration of Rhode is expected to open up new opportunities and enhance Elf Beauty's market position.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 14 analysts, the average target price for e.l.f. Beauty Inc (ELF, Financial) is $94.94 with a high estimate of $120.00 and a low estimate of $70.00. The average target implies an downside of 15.11% from the current price of $111.84. More detailed estimate data can be found on the e.l.f. Beauty Inc (ELF) Forecast page.
Based on the consensus recommendation from 17 brokerage firms, e.l.f. Beauty Inc's (ELF, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for e.l.f. Beauty Inc (ELF, Financial) in one year is $202.66, suggesting a upside of 81.21% from the current price of $111.84. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the e.l.f. Beauty Inc (ELF) Summary page.
