Core Viewpoint - Piper Sandler has lowered its price target for e.l.f. Beauty, Inc. to $85.00 from $100.00 while maintaining a Neutral rating, resulting in a more than 2% decline in shares on Monday [1] Group 1: Market Competition - Intensifying competition is noted as rivals regain momentum, impacting e.l.f.'s market share gains which slowed in the second quarter of fiscal 2026 but showed improvement in the third quarter due to product launches [2] - Competitors such as L'Oréal, NYX, and Maybelline are increasing their innovation efforts, raising the bar for differentiation in the market [2] Group 2: Sales Growth Estimates - The third-quarter fiscal 2026 estimate for core e.l.f. sales growth has been raised to 5%, exceeding the company's annual guidance of 3%–4% [3] - However, the fourth-quarter forecast has been lowered to a 1% decline due to challenging comparisons [3] Group 3: Valuation Metrics - The reduced price target reflects a valuation of 16x fiscal 2027 EBITDA, down from 18x previously [4] - The stock's current P/E multiple of 26x is near the midpoint of its recent 18x–35x range and may face compression if shipments continue to lag behind consumption trends into fiscal 2027 [4]

Core Insights - Oliveda International, Inc. is experiencing significant growth, with over 1,900% increase in the U.S. market during 2024 and 2025, and plans to expand into Europe following the opening of the Canadian market in July 2025 [1] - The company emphasizes a direct-to-consumer model for its waterless beauty products, which has been successful in the U.S. and Canada for nearly three years [2] - Waterless beauty is recognized as the fastest-growing sector in the beauty industry, driven by increasing awareness of water conservation and pollution issues [4] Company Overview - Oliveda International, Inc. and its subsidiary, Olive Tree People Inc., have over 20 years of experience in organic certification and the production of waterless beauty products derived from olive trees [4] - The founder, Thomas Lommel, has developed unique products and therapies, including Olive Tree Therapy and olive matcha, and is also involved in the mindfulness industry [4][5] - The company operates flagship stores in Berlin and Düsseldorf, alongside a Europe-wide retail network [6] Market Position - The brand's treatment concepts have been validated by conventional medicine and have received recognition in major publications, positioning waterless beauty as "The Next Big Thing" [7] - Celebrities, including Gigi Hadid, are endorsing Oliveda's products, contributing to its growing popularity [7]

Leadership Changes - Coty is undergoing a leadership change with Markus Strobel, a veteran from Procter & Gamble, set to become the executive chair and interim CEO starting in 2026 [1][7] - Current CEO Sue Nabi will step down after five years, and executive chair Peter Harf will retire after over 30 years of service [2] Company Performance - Coty has experienced a significant decline in its stock value, losing more than 50% since the beginning of the year due to falling sales amid macroeconomic uncertainty and higher tariffs [3][7] - The company reported fiscal first-quarter earnings that missed estimates, indicating ongoing challenges in sales performance [5] Strategic Direction - The appointment of Strobel may signal potential changes in Coty's strategy, particularly as the company launched a strategic review of its consumer beauty business in September [4] - Despite current challenges, Coty anticipates a return to growth by the second half of the fiscal year, although it has noted that retailers are being cautious in their ordering habits [5]

Core Insights - Coty is undergoing a leadership change with Markus Strobel, a veteran from Procter & Gamble, set to become the executive chair and interim CEO in 2026 [1][6] - Current CEO Sue Nabi will step down after five years, and executive chair Peter Harf will retire after over 30 years, marking a significant transition for the company [2] - The leadership shakeup comes as Coty faces declining sales due to macroeconomic challenges and increased tariffs, with shares losing over 50% of their value since the beginning of the year [3][6] Company Performance - Coty reported fiscal first-quarter earnings that fell short of estimates, with sales declining [5] - The company anticipates a return to growth in the second half of the fiscal year, although it has noted that retailers are being cautious in their ordering habits [5] - Coty shares have experienced a significant drop, down approximately 53% for 2025, with a notable loss of over 20% in a single session following a surprise loss reported in August [5]

Market Overview - Stocks are expected to open higher as the holiday-shortened trading week begins, following a volatile week where the S&P 500 recorded its third winning week in four [1] - There is uncertainty regarding the occurrence of a "Santa Claus Rally" due to the New York Stock Exchange closing early on Wednesday and entirely on Thursday for Christmas [1] Gold Market - Gold prices have reached a record high, increasing approximately 70% since the beginning of 2025, positioning gold as a more favorable wealth source compared to bitcoin [2] Nvidia - Nvidia shares increased by 2% after reports indicated the company aims to start shipping its H200 chips to China before mid-February, suggesting a potential recovery for the stock [3] OpenAI Funding - OpenAI is in discussions to raise $100 billion at an $830 billion valuation, up from a previously targeted $500 billion valuation within a week, which will support Oracle's data center buildout to compete with Google's AI model [4] GE Vernova - Jefferies raised its price target for GE Vernova to $830 from $815 while maintaining a buy rating, reflecting updated valuations that account for share repurchases through 2028, highlighting its role in the data center sector [5] Paramount's Acquisition Attempt - Paramount Skydance secured backing from billionaire Larry Ellison in its hostile bid to acquire Warner Bros. Discovery, following Netflix's agreement to purchase WBD's studio and streaming assets [6] Clearwater Analytics - Clearwater Analytics received an $8.5 billion acquisition offer from a group led by Permira and Warburg Pincus, with mixed analyst reactions regarding the likelihood of competing bids [7] E.l.f. Beauty - Piper Sandler reduced E.l.f. Beauty's price target to $85 from $100 while maintaining a hold rating, citing slower market share gains compared to competitors, though the new target still suggests nearly 6% upside from the previous close [8] Financial Services Sector - Morgan Stanley increased price targets for several financial services companies, including Intercontinental Exchange to $174 from $169, Charles Schwab to $148 from $139, and Robinhood to $147 from $146, driven by strong industry transactions and raised earnings estimates [9] Rocket Lab - Rocket Lab achieved a successful launch, marking its 21st perfect launch, prompting Stifel to raise its price target to $85 from $75 while maintaining a buy rating, supported by a contract worth up to $850 million from the Space Development Agency [10]

Core Insights - Cosmetics giant Coty appointed Markus Strobel as interim chief executive and board chair, effective Jan. 1 [1] Company Summary - Coty has made a leadership change by appointing Markus Strobel to the position of interim chief executive and board chair [1]

Core Insights - e.l.f. Cosmetics has extended its partnership with The Wonder Women of Wrestling Foundation for a second consecutive year, becoming the first beauty sponsor of the WWOWF Varsity Girls Wrestling Tournament scheduled for December 29-30, 2025, in Columbia, Missouri [1][2] Company Commitment - The partnership emphasizes e.l.f.'s dedication to promoting equality for women and girls in sports, particularly in areas that have historically lacked visibility, funding, and access [2][6] Industry Growth - Girls wrestling is identified as the fastest-growing high school sport in America, with participation increasing to over 74,000 athletes in the 2024-2025 school year, marking a 15% rise from the previous year, and nearly 1,000 additional schools adding girls wrestling programs [3][4] Event Significance - The seventh annual tournament in Columbia is one of the largest high school girls wrestling competitions in the U.S., showing significant year-over-year growth in attendance and awareness, indicating a cultural shift in the perception of girls wrestling [4][9] Scholarship Support - As part of the sponsorship, e.l.f. Cosmetics will support eight college-bound senior wrestlers through scholarships awarded via the WWOWF's annual essay competition, aimed at reducing financial barriers to higher education [5][6] Broader Initiatives - e.l.f. Cosmetics' partnership with WWOWF is part of a larger strategy to invest in women's sports, which includes long-term commitments to various sports leagues and initiatives, focusing on expanding access, increasing visibility, and funding scholarships [6][7]

Core Viewpoint - The beauty industry is experiencing a surge in IPO activity, with over 30 companies attempting to go public, but only about 20% have succeeded, indicating a stringent selection process by capital markets [3][6][13]. Group 1: IPO Landscape - More than 30 beauty companies, including raw material suppliers and brand owners, are in the process of seeking IPOs in various markets, including A-shares, Hong Kong, and the US [1][3]. - Successful IPOs this year include six companies, with three listed on the Hong Kong Stock Exchange, two on NASDAQ, and one on the A-share market [4][5]. - The majority of companies are still in the preparatory stages, with some notable names like Naturals and Vicky Technology having revenue close to 2.5 billion [6][20]. Group 2: Market Trends - The focus of beauty companies' IPOs has shifted from A-shares to Hong Kong, especially after the tightening of IPO regulations in A-shares post-2022 [10][13]. - The Hong Kong market has become a preferred destination for beauty companies due to favorable policies and a more accommodating IPO environment [15][19]. - Recent regulatory changes in Hong Kong have made it easier for companies to list, enhancing the attractiveness of the market for beauty brands [15][19]. Group 3: Challenges and Opportunities - Companies face significant challenges in achieving sustainable profitability, building a diverse brand matrix, and enhancing research and development capabilities [22][23]. - The capital market is increasingly favoring companies with strong financial performance and a robust brand portfolio, as seen with leading firms like Proya and Up Beauty [23][27]. - Many companies still rely heavily on single brands, which poses risks and may hinder their ability to attract investment [32][34]. Group 4: Financial Performance - Leading beauty companies like Proya reported revenues exceeding 5 billion, while others like Plant Doctor and Lin Qingxuan are struggling with revenues around 1 billion [23][26]. - Profitability metrics show that only a few companies have net profits exceeding 500 million, highlighting the financial disparities within the industry [23][26]. - Research and development investment is critical, with only a few companies meeting the industry benchmark for R&D spending, which is essential for long-term competitiveness [36][39].

Core Viewpoint - Coty Inc. has divested its remaining 25.8% stake in Wella for $750 million, aiming to focus on its fragrances segment amid declining demand for color cosmetics [1][2][3] Group 1: Financial Transactions - Coty Inc. sold its remaining 25.8% ownership in Wella to KKR for $750 million, while retaining 45% of any future sale or IPO proceeds after KKR's preferred return [1][2] - The company plans to use the cash from the transaction to pay off its debt [2] Group 2: Strategic Focus - The divestiture marks the end of a five-year program aimed at streamlining Coty's offerings and operations [3] - Coty is refocusing on its fragrances segment due to challenges in the mass beauty segment and declining demand for color cosmetics [2] Group 3: Market Position and Analyst Ratings - Citi has reduced Coty Inc.'s price target from $4.25 to $3.50 while maintaining a 'Neutral' rating, reflecting a revised outlook for the company [4] - Coty operates in the branded beauty products sector, with two main segments: Prestige and Consumer Beauty [4]

Group 1 - e.l.f. Beauty, Inc. is currently experiencing temporary shipment timing challenges that are affecting its sales [1] - Despite these challenges, the company is expected to see an acceleration in revenue growth beyond the current fiscal year [1] Group 2 - The analyst has over 15 years of experience in investment and research services, focusing on mid-sized hedge funds [1] - The investment strategy includes medium-term investing in growth stories available at reasonable prices and short selling when downside catalysts are identified [1] - The analyst has a background in analyzing industrial, consumer, and technology sectors, which informs their investment convictions [1]