Canaccord has revised its price target for Helen of Troy (HELE, Financial), decreasing it to $70 from a previous $91, while maintaining a Buy rating on the stock. This adjustment comes as the firm anticipates that tariff-related challenges could affect the company's near-term profit margins and revenue growth.
The updated outlook is based on a preview of the upcoming quarterly performance, which led Canaccord to lower its estimates and valuation for Helen of Troy. However, despite these concerns, the firm still views the company's current valuation as appealing due to strategic shifts in its manufacturing processes.
Helen of Troy has been proactive in reducing its reliance on Chinese manufacturing and has instead begun near-sourcing to Mexico and relocating production operations to Vietnam. These moves are expected to help mitigate some of the impacts from tariffs, offering a more promising long-term outlook for the company.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 3 analysts, the average target price for Helen Of Troy Ltd (HELE, Financial) is $71.00 with a high estimate of $105.00 and a low estimate of $38.00. The average target implies an upside of 122.64% from the current price of $31.89. More detailed estimate data can be found on the Helen Of Troy Ltd (HELE) Forecast page.
Based on the consensus recommendation from 5 brokerage firms, Helen Of Troy Ltd's (HELE, Financial) average brokerage recommendation is currently 2.6, indicating "Hold" 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 Helen Of Troy Ltd (HELE, Financial) in one year is $109.91, suggesting a upside of 244.65% from the current price of $31.89. 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 Helen Of Troy Ltd (HELE) Summary page.
