10:57 AM EST, 02/07/2025 (MT Newswires) -- e.l.f. Beauty (ELF) reduced its fiscal 2025 guidance amid weaker January trends, category-wide declines, challenging comparisons from prior innovations, and softer sales of new launches, BofA Securities said in a note on Friday.

The firm said weaker trends, including some weeks of negative scanner data, have contributed to the decline in e.l.f. Beauty's stock.

However, BofA continues to expect double-digit sales growth for the company in fiscal 2026 and believes the valuation, currently at or below peers in Home and Personal Care, is undeserved.

The company exceeded expectations in fiscal Q3, with sales growing 31% year-over-year, primarily driven by volume growth. However, adjusted EBITDA fell short of estimates due to an unexpected foreign exchange loss.

BofA slashed its price objective on e.l.f. Beauty's stock to $98 from $180 and reiterated its buy rating.

Price: 71.07, Change: -17.42, Percent Change: -19.68