Oddity Tech gains as BofA upgrades to "buy"

Oddity Tech

04/10/2023 13:45

** Shares of Oddity Tech Ltd  ODD.O  up 2.7% at $30.37
premarket as BofA Global Research upgrades Israeli-based online
cosmetics retailer to "buy" from "neutral"
    ** Stock currently reflects 12x calendar 2024 EV/EBITDA and
with peers e.l.f. Beauty  ELF.M , Coty Inc  COTY.N , and Estee
Lauder  EL.N  trading at avg of 16x, BofA says it sees room for
multiple expansion given ODD’s 20% sales growth & >20% EBITDA
margin profile
    ** Still, BofA chops its PT to $37 from $60
    ** On Tues, ODD's stock closed up 5.3% at $29.57 after co
said expected Q3 rev to grow 29%-31% yr/yr vs prior guidance of
18%-23%, driven by its brands IL MAKIAGE and SpoiledChild brands
    ** 4 of 7 analysts covering ODD rate stock "buy" or "strong
buy", rest "hold" and median PT is $54, LSEG data showed
    ** Through Tues close, ODD's shares have fallen ~38% from
their Jul 19 debut-day close ($47.53) after IPO priced at $35

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))