UBS has revised its price target for e.l.f. Beauty (ELF, Financial), dropping it from $74 to $59 while maintaining a Neutral stance on the stock. This adjustment is part of the bank's first-quarter preview for the consumer staples sector.
The recent weeks have shown a weakening in the foundational market conditions, primarily due to declining consumer demand and uncertainties around tariffs, according to UBS analysts. They describe the upcoming earnings season for consumer staples as particularly challenging.
In contrast to companies like e.l.f. Beauty, UBS is optimistic about firms with strong or improving fundamental transparency, regardless of their current valuation. Those that UBS believes are well-positioned for the earnings season include Coca-Cola (KO), Keurig Dr Pepper (KDP), Celsius (CELH), Monster Beverage (MNST), and Church & Dwight (CHD).
