10:46 AM EDT, 10/08/2025 (MT Newswires) -- E.l.f. Beauty's (ELF) rhode skincare brand shows "clear" consumer appeal, "strong" launch execution, and broadens the company's reach into prestige beauty, Morgan Stanley said in a Wednesday note.

The brokerage said it raised its earnings per share estimates for the company by 1-2% for the second half of fiscal 2026 and fiscal 2027 to reflect rhode's strong start, along with solid base business scanner trends.

Rhode's Sept. 4 debut is reported to be Sephora North America's largest launch on record at about 2.5 times the prior record.

"While the scale of early success is exceptional, sustainability a month into launch is questionable, although appears strong so far, and we acknowledge lower visibility on the durability of celebrity-backed brand momentum," according to the note.

Morgan Stanley raised its price target on the stock to $170 from $134 and reiterated an overweight rating.

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