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19 Apr

E.l.f. Still Has Much Opportunity for Growth, Say Analysts

Market jitters over E.l.f. Beauty have been overblown, in accordance with analysts. The mass beauty company’s shares fell almost 12 percent Wednesday, its biggest one-day fall since October, after Ulta Beauty CEO Dave Kimbell warned that demand for beauty usually had slowed by greater than he had anticipated. Other beauty firms, including the Estée Lauder Cos. and Coty Inc., also saw shares slide by 4 and 6 percent respectively. Ulta, meanwhile, dropped 15 percent. But in a note, Anna Lizzul, a research analyst at Bank of America, described E.l.f.’s share price slide as each “overblown” and “overdone.” She pointed to the indisputable fact that while Kimbell said the slowdown was across segments and costs during a Wednesday appearance at a J.P. Morgan conference...
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5 Apr

Analysts Laud the L’Oréal-Aesop Deal – WWD

PARIS — L’Oréal’s deal to accumulate Aesop was lauded Tuesday by financial analysts, who expect the French beauty giant to leverage that business abroad, especially in China, travel retail and fragrance. As previously reported, it was revealed late Monday that L’Oréal has signed an agreement to buy the Australian luxury personal care company from Natura & Co. The proposed transaction values Aesop at an enterprise value of greater than $2.5 billion. “The valuation is nice for an asset growing 20 percent per 12 months and EBITDA margins of 20 percent, and the brand only recently expanded into China, which leaves loads of headway for future growth,” wrote Bruno Monteyne, senior analyst of European food, European household and private care at Bernstein, in a...
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