Shares of e.l.f. Beauty Inc. (ELF) are soaring 6.96% in pre-market trading on Monday, following a significant upgrade from Morgan Stanley. The investment bank has raised its rating on the cosmetics company from Equalweight to Overweight, signaling increased confidence in the stock's potential.
In addition to the rating upgrade, Morgan Stanley has also adjusted its price target for e.l.f. Beauty, raising it from $114 to $134. This substantial increase in the expected value of the company's shares is likely contributing to the positive investor sentiment reflected in the pre-market surge.
The upgrade aligns with the broader positive outlook on e.l.f. Beauty. According to analysts polled by FactSet, the company currently maintains an average rating of overweight and a mean price target of $133.62. This consensus view, coupled with Morgan Stanley's more bullish stance, suggests that investors see significant growth potential in e.l.f. Beauty, potentially setting the stage for continued interest in the stock.
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