Elf Beauty drops; stock could remain volatile, says J.P. Morgan

** Shares of Elf Beauty ELF.N fall 2.77% to $83.98 premarket

** The company raises its fiscal 2027 net sales outlook to $1.94 billion to $1.97 billion from a previous forecast of $1.84 billion to $1.87 billion.

** It also raises annual adjusted profit to a range of $3.50 to $3.55 per share, from a previous projection of $3.27 to $3.32 per share.

** Growth in international markets helped offset softer spending by U.S. consumers grappling with persistent inflation, the company says.

** However, the stock could remain volatile due to slower growth expected in the second half, J.P. Morgan says.

** The bank says this reflects the company's conservative outlook despite ongoing growth initiatives such as product innovation, distribution expansion and international growth.

** 12 of 18 brokerages rate the stock "buy" or higher, while 6 rate it "hold"; their median price target is $85, according to LSEG-compiled data.

** As of the previous day's close, the stock was up 13.5% year to date.