Equity Research Focusing on the Consumer Sector, Small Cap Consumer Research

Small Cap Consumer Research

Equity Research Focusing on the Consumer Sector

Small Cap Consumer Research, LLC is a leading company-sponsored equity research provider focusing on the consumer sector (apparel, brand licensing and specialty retailing segments).

Equity Bottom-Up

<ul><li>We are reiterating our Buy rating.</li><li>$0.25 price target and projections for Starco Brands as we look at key trends for 2H24 and beyond.</li><li>We believe 2024, while somewhat frustrating from an investor standpoint (given the downward revenue guidance and pulling of EBITDA guidance after 1Q), will be seen as a positive over the longer term, as the company has made material steps forward for all of their brands, positioning Starco for significant top line growth and going forward, material operating leverage, which we believe will become increasingly self-evident in 2025 and beyond.</li></ul>

We are reiterating our Buy rating.$0.25 price target and projections for Starco Brands as we look at key trends for 2H24 and beyond.We believe 2024, while somewhat frustrating from an investor standpoint (given the downward revenue guidance and pulling of EBITDA guidance after 1Q), will be seen as a positive over the longer term, as the company has made material steps forward for all of their brands, positioning Starco for significant top line growth and going forward, material operating leverage, which we believe will become increasingly self-evident in 2025 and beyond.

elf Beauty Inc - STCB: 2H Signposts; Building for a Better Tomorrow; Reiterate Buy, $0.25 PT

<ul><li>We are reiterating our Buy rating, $0.25 price target and projections for Starco Brands after meeting with management in their Los Angeles headquarters.</li><li>With 2024 shaping up as a period of setting the stage for material growth in all the company's brands, we believe management is confident they are making the correct investments to drive multiple periods of top and bottom line upside, with the correct retail partners and product upgrades and expansions.</li><li>As such, we look for the company to continue to put the pieces in place in 2024 to achieve highly significant door expansion and new category growth going forward, positioning Starco for material gains.</li></ul>

We are reiterating our Buy rating, $0.25 price target and projections for Starco Brands after meeting with management in their Los Angeles headquarters.With 2024 shaping up as a period of setting the stage for material growth in all the company's brands, we believe management is confident they are making the correct investments to drive multiple periods of top and bottom line upside, with the correct retail partners and product upgrades and expansions.As such, we look for the company to continue to put the pieces in place in 2024 to achieve highly significant door expansion and new category growth going forward, positioning Starco for material gains.

elf Beauty Inc - STCB: Management Meetings Show STCB Powering Through; Reiterate Buy, $0.25 PT

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>e.l.f. Beauty reported a solid 2024 fiscal fourth quarter, hitting a significant milestone of over $1 billion in net sales.</li><li>The company grew net sales by 77%, exceeding expectations.</li><li>Q4 marked the 21st consecutive quarter of both net sales growth and market share gains.</li></ul>

e.l.f. Beauty reported a solid 2024 fiscal fourth quarter, hitting a significant milestone of over $1 billion in net sales.The company grew net sales by 77%, exceeding expectations.Q4 marked the 21st consecutive quarter of both net sales growth and market share gains.

e.l.f. Beauty Inc.: Will The Strong Growth in Sales and Market Share Last? - Major Drivers

<ul><li>We are reiterating our Buy rating and price target for Starco Brands, but lowering our 2024 and 2025 projections to primarily reflect higher marketing costs to support multiple newly announced door expansions for each of the company's key brands beginning in 2Q24 and concentrated in 4Q24.</li><li>We believe Starco's offerings are poised to take highly material leaps, with major expansions at over 10,00 doors in 2024, which we believe will position the company for material, multi-year top line growth and, with the ability to begin to leverage their somewhat fixed infrastructure, margin expansion.</li><li>Further, we believe these agreements position Starco to drive even further sales per door as they increase offerings and categories.</li></ul>

We are reiterating our Buy rating and price target for Starco Brands, but lowering our 2024 and 2025 projections to primarily reflect higher marketing costs to support multiple newly announced door expansions for each of the company's key brands beginning in 2Q24 and concentrated in 4Q24.We believe Starco's offerings are poised to take highly material leaps, with major expansions at over 10,00 doors in 2024, which we believe will position the company for material, multi-year top line growth and, with the ability to begin to leverage their somewhat fixed infrastructure, margin expansion.Further, we believe these agreements position Starco to drive even further sales per door as they increase offerings and categories.

elf Beauty Inc - STCB: 1Q Review: Building for the Future; Reiterate Buy, Price Target

<ul><li>We are reiterating our Buy rating, projections and $0.25 price target for Starco Brands with the company reporting 1Q24 (March) results after the close on Wednesday.</li><li>We believe 1Q saw continued progress on multiple levels, with Whipshots rolling out new flavors and now in almost all 50 states, Soylent expanding their protein offerings, Art of Sport beginning its soft launch on Amazon and Skylar expanding new product categories and fragrances.</li><li>As such, and with management remaining focused on driving cost savings and leveraging their relationship and knowledge of the aerosol-driven manufacturing segment, we remain focused on both top line and margin opportunities at STCB. We reiterate our Buy rating and $0.25 price target.</li></ul>

We are reiterating our Buy rating, projections and $0.25 price target for Starco Brands with the company reporting 1Q24 (March) results after the close on Wednesday.We believe 1Q saw continued progress on multiple levels, with Whipshots rolling out new flavors and now in almost all 50 states, Soylent expanding their protein offerings, Art of Sport beginning its soft launch on Amazon and Skylar expanding new product categories and fragrances.As such, and with management remaining focused on driving cost savings and leveraging their relationship and knowledge of the aerosol-driven manufacturing segment, we remain focused on both top line and margin opportunities at STCB. We reiterate our Buy rating and $0.25 price target.

elf Beauty Inc - STCB: 1Q Preview: Adding Value, Driving Upside; Reiterate Buy, $0.25 PT

United States

e.l.f. Beauty, Inc. operates as a cosmetic company. The Company offers beauty products for eyes, lips, and face. e.l.f. Beauty provides eyeliners, lipsticks, lip care and brushes, powder, and skin care products.

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elf Beauty Inc (ELF US)

elf Beauty Inc - STCB: 2H Signposts; Building for a Better Tomorrow; Reiterate Buy, $0.25 PT

We are reiterating our Buy rating. $0.25 price target and projections for Starco Brands as we look at key trends for 2H24 and beyond. We believe...

Small Cap Consumer Research

elf Beauty Inc - STCB: Management Meetings Show STCB Powering Through; Reiterate Buy, $0.25 PT

We are reiterating our Buy rating, $0.25 price target and projections for Starco Brands after meeting with management in their Los Angeles...

Small Cap Consumer Research

elf Beauty Inc - STCB: 1Q Review: Building for the Future; Reiterate Buy, Price Target

We are reiterating our Buy rating and price target for Starco Brands, but lowering our 2024 and 2025 projections to primarily reflect higher...

Small Cap Consumer Research

elf Beauty Inc - STCB: 1Q Preview: Adding Value, Driving Upside; Reiterate Buy, $0.25 PT

We are reiterating our Buy rating, projections and $0.25 price target for Starco Brands with the company reporting 1Q24 (March) results after the...

Small Cap Consumer Research

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Market Cap (USDm)

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elf Beauty Inc - STCB: 2H Signposts; Building for a Better Tomorrow; Reiterate Buy, $0.25 PT

We are reiterating our Buy rating. $0.25 price target and projections for Starco Brands as we look at key trends for 2H24 and beyond. We believe...

Small Cap Consumer Research

elf Beauty Inc - STCB: Management Meetings Show STCB Powering Through; Reiterate Buy, $0.25 PT

We are reiterating our Buy rating, $0.25 price target and projections for Starco Brands after meeting with management in their Los Angeles...

Small Cap Consumer Research

e.l.f. Beauty Inc.: Will The Strong Growth in Sales and Market Share Last? - Major Drivers

e.l.f. Beauty reported a solid 2024 fiscal fourth quarter, hitting a significant milestone of over $1 billion in net sales. The company grew net...

Baptista Research

elf Beauty Inc - STCB: 1Q Review: Building for the Future; Reiterate Buy, Price Target

We are reiterating our Buy rating and price target for Starco Brands, but lowering our 2024 and 2025 projections to primarily reflect higher...

Small Cap Consumer Research

elf Beauty Inc - STCB: 1Q Preview: Adding Value, Driving Upside; Reiterate Buy, $0.25 PT

We are reiterating our Buy rating, projections and $0.25 price target for Starco Brands with the company reporting 1Q24 (March) results after the...

Small Cap Consumer Research