Actress Jessica Alba's Honest Co down on weak forecast, PT cuts

Honest

25/03/2022 10:16

** Shares of the eco-friendly baby, beauty and household
products maker  HNST.O  down 17.5% at $4.98 in premarket trade
    ** Co said on Thursday it expects Q1 revenue to decline ~15%
from a year earlier, while analysts were expecting an 11.2%
increase, according to Refinitiv data
    ** HNST, co-founded by actress Jessica Alba, also missed Q4
revenue estimates  urn:newsml:reuters.com:*:nL3N2VR4F0
    ** Jefferies cuts rating on the stock to "hold" from "buy";
lowers PT to $5 from $11
    ** "We favor the content, community and commerce attributes,
and the high profile of the founder, but lack confidence having
taken estimates lower every quarter post-IPO" - Jefferies
    ** Says co's model has only moved down post-IPO, despite the
business having promising potential
    ** J.P. Morgan says it thinks the stock will see
capitulating trades in the short term as investors question
management's forecasting capabilities; lowers PT by $3 to $7
    ** Avg. rating of nine analysts is "buy"; median PT is $11 -
Refinitiv data
    ** As of last close, stock had fallen ~25% this year

 (Reporting by Tiyashi Datta in Bengaluru)
 ((tiyashi.datta@thomsonreuters.com))