e.l.f. Beauty could see its stock rally as it accelerates growth of the recently acquired Rhode brand and expands its namesake brand into hair care. The company completed its $1 billion acquisition of Rhode last August, a high-end skincare line founded by Hailey Bieber that had quickly grown to over $200 million in sales. e.l.f. is now expanding Rhode internationally throughout Europe via Sephora stores and online, after entering Australia, New Zealand, and Mexico, while also broadening its product assortment with items like bronzers and a skin-prep crossover product. Meanwhile, the namesake e.l.f. brand is entering the hair care category with products including shampoo, conditioner, and styling treatments, sold at Target and through TikTok shops. The stock trades at a forward P/E of less than 22 times fiscal 2028 analyst estimates.
ELF Beauty IncExpansion of Rhode brand internationally and entry into hair care category drive product demand growth.