10:35 AM EDT, 08/08/2025 (MT Newswires) -- E.l.f. Beauty (ELF) is offering an "attractive" entry point after the stock fell sharply following its fiscal Q1 results, Deutsche Bank said in a note emailed Friday.

"On Thursday, ELF's stock declined 9.5%, leaving the stock below $100 and presenting in our view an attractive entry point with compelling 20% plus potential upside," the note said.

Deutsche Bank said the fall could be due to "elevated confusion" over Q2 revenue and margin performance messaging related to price increases, tariff costs, and rhode brand integration.

"Any such downside risk would likely be solely timing-related, with minimal carryover effects on our 2H or FY27 outlook," it said. "However, moreover, we instead see consensus numbers settling out in a very reasonable spot."

Deutsche Bank upgraded the stock to buy with a price target of $121.

E.l.f shares were over 4% higher in recent trading.

Price: 103.97, Change: +4.05, Percent Change: +4.05