JPMorgan analyst Cory Carpenter has adjusted the firm's price target for Oddity (ODD, Financial), raising it significantly from $63 to $85. Despite the change, the firm continues to maintain an Overweight rating on Oddity's stock. This adjustment is part of a broader update concerning the internet SMID and video game sectors. Investors remain encouraged by the firm's outlook, which reflects confidence in Oddity's potential performance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for ODDITY Tech Ltd (ODD, Financial) is $62.88 with a high estimate of $72.00 and a low estimate of $52.00. The average target implies an downside of 17.83% from the current price of $76.52. More detailed estimate data can be found on the ODDITY Tech Ltd (ODD) Forecast page.
Based on the consensus recommendation from 9 brokerage firms, ODDITY Tech Ltd's (ODD, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
ODD Key Business Developments
Release Date: April 30, 2025
- Revenue: Grew 27% to $268 million.
- Adjusted EBITDA: $52 million, representing a 19.5% adjusted EBITDA margin.
- Free Cash Flow: $87 million.
- Gross Margin: 74.9%, expanded 116 basis points year over year.
- Adjusted Diluted Earnings Per Share (EPS): $0.69.
- Cash and Cash Equivalents: $257 million with zero debt.
- Full Year Revenue Growth Outlook: Expected between 22% and 23%, or between $790 and $798 million.
- Full Year Gross Margin Outlook: Raised to 71%.
- Adjusted EBITDA Outlook: $157 to $161 million.
- Adjusted EPS Outlook: $1.99 to $2.04.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ODDITY Tech Ltd (ODD, Financial) reported a 27% revenue growth in Q1 2025, reaching $268 million, exceeding expectations.
- The company achieved an adjusted EBITDA of $52 million, representing a 19.5% margin, and generated $87 million in free cash flow.
- ODDITY Tech Ltd (ODD) continues to benefit from the consumer shift to online shopping, positioning itself as a dominant B2C platform.
- The company is on track to meet its $1 billion revenue goal for Il Makiage by 2028 and is seeing strong growth in its Spoiled Child brand.
- ODDITY Tech Ltd (ODD) is expanding internationally, with promising results from markets like France, Italy, and Spain, and plans to continue scaling globally.
Negative Points
- Despite strong performance, ODDITY Tech Ltd (ODD) faces potential challenges from tariffs, which could impact gross margins by 50 to 100 basis points.
- The company is heavily reliant on the US market, with 80% of its business currently based there, which could pose risks if domestic demand weakens.
- ODDITY Tech Ltd (ODD) is investing heavily in new brand launches and Oddity Labs, which may not contribute to revenue in the short term.
- The company acknowledges that its gross margin of 71% may not be sustainable long-term, with expectations to stabilize in the high 60s.
- ODDITY Tech Ltd (ODD) faces competition in the beauty industry, particularly in the telehealth and biotech sectors, where it is investing to gain a competitive edge.
