11:52 AM EDT, 09/30/2024 (MT Newswires) -- E.l.f. Beauty (ELF) stock value has significantly declined amid an unexpected slowdown in the US scanner data, which is the sales data from retail outlets in the US, Morgan Stanley said in a note Monday.

Growth is heavily concentrated in the lipstick category, which accounts for half of the company's quarter-to-date growth, raising concerns about the broader portfolio's performance, Morgan Stanley noted.

E.l.f. Beauty's revenue expectations for Q2 and H2 remain beatable due to strength outside of the US, but there is still concern about the long-term growth potential, the investment firm said.

Morgan Stanley maintained an equalweight rating for e.l.f. Beauty while reducing the price target to $139 from $184.

Price: 110.37, Change: -2.19, Percent Change: -1.95