Baird upgraded elf Beauty stock to "outperform" with a $230 price target
elf Beauty Inc (NYSE:ELF) stock is up 4.3% to trade at $178.04 this morning, after Baird upgraded cosmetics name to "outperform" from "neutral," to go with a price-target hike to $230 from $210, a 34.7% premium to last night's close." The analyst in coverage cited the firm's expanding distribution channels and international opportunities. JPMorgan Securities also hiked its price target on the security, adjusting up to $224 from $182.
With today's pop, ELF shares are looking to snap a three-day pullback of 19%. This drawdown ran out of steam at the equity's160-day moving average, a trendline that stepped up as support back in May. Year to date, the stock is up 18.3%.
Short interest has rolled back on the equity, down 16.5% during the two most recent reporting periods. This accounts for 5.8% of elf Beauty stock's total available float, or just under two days' of pent-up buying buying power.
ELF could also benefit from a shift in sentiment in the options pits. This is according to the stock's Schaeffer's put/call open interest ratio (SOIR) of 1.37 that stands above 92% of annual readings, implying a put-bias amongst premium traders.
On the heels of today's pop, it's worth pointing out that elf Beauty stock has tended to make bigger moves than what the options market has priced in, looking back 12 months. This is per its Schaeffer's Volatility Scorecard (SVS), which sits at a relatively high 72, out of a possible 100.