e.l.f. Beauty Inc (ELF.N): Assessing ELF‘s Current Challenges & Opportunities Ahead

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e.l.f. Beauty Inc (ELF.N): Assessing ELF‘s Current Challenges & Opportunities Ahead

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18 Jun 2026 05:00:00 ET │ 35 pages

e.l.f. Beauty Inc (ELF.N)

Assessing ELF's Current Challenges & Opportunities Ahead

CITI'S TAKE

We’ve been getting more inbound on ELF as growth in the core e.l.f. brand

has slowed in recent months with the company’s plan to re-accelerate the

core (innovation, price reduction) on the horizon, as well as further Buy

distribution expansion at rhode. In this note we explore some of the key Price (17 Jun 26 16:00) US$62.28

investor debates, such as the core e.l.f. brand’s performance, contribution

Target price US$87.00from innovation, including the recent announcement of the expansion into

hair care, the impact of price reductions and rhode’s expansion through Expected share price return 39.7%

Sephora Europe, to better understand the impact on the business. Overall, Expected dividend yield 0.0%

we recognize there are challenges facing the core business for which

Expected total return 39.7%investors will likely require proof that management’s responses are working

for the stock to further re-rate. However, we believe these concerns are Market Cap US$3,702M

largely reflected in ELF’s stock price and valuation levels, and maintain Buy.

Core e.l.f. Initiatives — ELF has highlighted strong early volume increases following

the $4 price reduction on Halo Glow Skin Tints, implying a strong elastic response Price Performance

(>1.7x). We think this initial work provides a rough barometer for how future price (RIC: ELF.N, BB: ELF US)

rollbacks could unfold. As there are few details on further price reductions, we

include sensitivities framing the benefit at different elasticities & scope of the

rollbacks.