Shares of e.l.f. Beauty (NYSE:ELF) experienced a significant decline on Monday, following an update from Piper Sandler analyst Korinne Wolfmeyer.
Despite the drop, Wolfmeyer maintained her Overweight rating on the stock and reiterated a price target of $260.
In her analysis, Wolfmeyer described the sell-off as a potential buying opportunity for investors.
She noted that even with the recent dip, e.l.f. Beauty's sales trajectory remains strong, with the company expected to achieve over 30% top-line growth in the second fiscal quarter.
"When we piece together the other sales components for ELF, we still can see a clear path to 30%+ top line growth in FQ2," Wolfmeyer wrote, underscoring her confidence in the company's ongoing performance.
The market reaction stands in contrast to the positive outlook, suggesting potential volatility as investors weigh the long-term growth prospects against the immediate stock movement.
At the time of this report, e.l.f. Beauty's share price stood at $156.09.