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Stocks•1 May 2026•

1 min read

Morgan Stanley Downgrades Elf Beauty to Equal Weight on Competitive Pressures

Key Facts

1Morgan Stanley downgraded Elf Beauty from Overweight to Equal Weight and lowered the price target from $80 to $67.

2The downgrade is driven by concerns over market share losses in core cosmetics and competitive pressure from smaller brands.

Morgan Stanley has downgraded Elf Beauty (ELF) from Overweight to Equal Weight, significantly lowering its price target from $80 to $67. The downgrade stems from growing concerns regarding market share erosion within the company's core cosmetics segment. Analysts highlighted intensifying competitive pressure from smaller, agile brands that are increasingly capturing consumer interest. Furthermore, the bank anticipates durable headwinds as the company enters upcoming pricing cycles in a challenging retail environment. This shift in rating reflects a more cautious outlook on the stock's ability to sustain its historical growth momentum. Consequently, the downgrade is expected to weigh on investor sentiment and put immediate downward pressure on the share price.