TD Cowen Cuts e.l.f. Beauty Target to $100 after 38% Q3 Sales Surge
TD Cowen trimmed e.l.f. Beauty’s target price by 9.1% to $100 while maintaining its Buy rating after reviewing Q3-FY2026 results. The company reported 38% year-over-year net sales growth, led by its “rhode” brand U.K. launch, and now forecasts full-year sales of $1.600–$1.612 billion.
1. Analyst Update and Price Target Change
On February 9, TD Cowen reduced its price target on e.l.f. Beauty from $110 to $100, a 9.1% cut, while reaffirming a Buy recommendation. The adjustment reflects updated revenue forecasts following the release of Q3-FY2026 operating results.
2. Q3-FY2026 Results and Growth Drivers
In Q3, e.l.f. Beauty achieved 38% year-over-year net sales growth. The successful launch of its “rhode” brand in U.K. Sephora stores accounted for 36 percentage points of the increase, with the remaining 2 points stemming from price hikes, indicating flat organic volume growth.
3. Updated Full-Year Guidance
Management now expects full-year net sales between $1.600 billion and $1.612 billion, up from a previous range of $1.550 billion to $1.570 billion, equating to 18.0%–19.5% growth. The “rhode” brand is projected to contribute $260 million–$265 million to this total.