This Beauty Firm Associated With Hailey Bieber’s Rhode Skin Gets A Glow Up From Investors And Wall Street

Elf Beauty (ELF) shares soared nearly 10% during midday trading on Monday after Morgan Stanley upgraded the company’s stock to ‘overweight’ from ‘equal weight,’ following its second-quarter results last week, where the beauty firm’s net income dropped due to higher tariff costs.

Retail sentiment on Elf Beauty remained unchanged in the ‘extremely bullish’ territory, with chatter at ‘extremely high’ levels, according to data from Stocktwits.

Morgan Stanley also raised its price target on Elf Beauty to $134, up from $114, according to TheFly. The brokerage noted that the consensus "looks materially too low” considering the potential profit contribution, "far above" consensus expectations from pricing, accretion upside from Hailey Bieber's skincare and makeup brand Rhode’s deal, as well as solid base business growth.

The brokerage added that the Elf Beauty’s forecasts are 18% above consensus in terms of fiscal 2027 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).

A user on Stocktwits said that it took time for Elf Beauty’s stock to jump again after the sharp decline following its quarterly earnings.

Elf Beauty is known for its affordable cosmetics and beauty products that come as low as $2. The company said last week that it has raised prices on its products by $1 starting from August 1 to mitigate the impact of U.S. President Donald Trump’s tariffs, mainly on Asian countries.

The company has tried to reduce its reliance on China production, which makes about 75% of its items. Its quarterly revenue and adjusted profit beat Wall Street expectations.

A user on Stocktwits noted that they were happy with the stock’s performance after buying back shares sold at $120.

Elf Beauty’s shares were currently trading at $112. The stock has declined over 10% year-to-date and lost nearly 22% of its value in the last 12 months.

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