Morgan Stanley analyst Dara Mohsenian downgraded e.l.f. Beauty to Underweight from Equal Weight, as he contends the market remains far too bullish on a growth recovery following the company's weaker than expected 2018 guidance. The company's slowing revenue growth appears to be more driven by weakening market share trends than by slowing beauty category growth, Mohsenian tells investors. Also, in FY18 e.l.f. will face greater competition from larger cosmetics peers, particularly Coty's (COTY) CoverGirl brand, and the company's skincare launch does not appear to be a game changer, the analyst added. Mohsenian cut his price target on e.l.f. shares to $15 from $20.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here

TD Cowen analyst Oliver Chen lowered the firm's price target on Coty to $13 from $16 and keeps a Buy rating on the shares. The firm said recent stock pullbacks of (13%) imply modest expectations ahead of earnings but they remain constructive on the category.

TD Cowen analyst Oliver Chen upgraded e.l.f. Beauty to Buy from Hold with a price target of $190, down from $220. The analyst sees potential for e.l.f. to double its business by fiscal 2027 with shelf space and international expansion as the driving forces. The firm sees the company's new product innovations boosting overall growth at key franchises like Halo and Putty. It calls e.l.f. a "structural growth story with robust growth drivers" and expects the stock's valuation multiple to re-rate higher.