Olaplex Holdings drops on Cowen downgrade to 'market perform'

Olaplex Holdings

16/03/2023 11:19

** Haircare company Olaplex Holdings Inc's shares  OLPX.O 
down ~4% to $3.85 in premarket trade
    ** Cowen and Company downgrades stock to "market perform"
from "outperform"; cuts PT to $4.5 from $10
    ** Brokerage says downgrade reflects slowing consumer
demand, combined with heightened competition 
    ** Says OLPX's long-term margins are at risk as its
management acknowledges the need to invest in marketing and
sales, going forward
    ** Cowen says penetrating premium salons may take some time 
    ** Three of 13 brokerages rate the stock "buy" or higher,
seven "hold" and three "sell"; their median PT is $5.5
    ** Up to Wednesday's close, stock down ~23% YTD

 (Reporting by Shristi Achar A in Bengaluru)
 ((Shristi.AcharA@thomsonreuters.com;))