Morgan Stanley Increases ODDITY Tech (NASDAQ:ODD) Price Target to $16.50

Key Points

• Morgan Stanley raised ODDITY Tech’s price target from $10.00 to $16.50 while maintaining an “equal weight” rating, implying roughly 2% upside from the stock’s $16.17 price.
• Analyst sentiment remains cautious: ODDITY has a consensus “Reduce” rating, with 10 Hold and four Sell recommendations, despite Jefferies and Truist raising their targets to $18.
• The company beat quarterly revenue and adjusted EPS estimates, but results weakened sharply year over year, with revenue down 24.9% and EPS falling to $0.20 from $0.92 amid ongoing advertising and margin concerns.

ODDITY Tech (NASDAQ:ODD - Get Free Report) had its price objective lifted by investment analysts at Morgan Stanley from $10.00 to $16.50 in a note issued to investors on Thursday, Benzinga reports. The firm currently has an "equal weight" rating on the stock. Morgan Stanley's price target indicates a potential upside of 2.03% from the stock's current price.

Other research analysts also recently issued research reports about the company. KeyCorp reaffirmed a "sector weight" rating on shares of ODDITY Tech in a research note on Wednesday, June 3rd. The Goldman Sachs Group cut shares of ODDITY Tech from a "hold" rating to a "sell" rating and decreased their price target for the company from $16.00 to $8.00 in a research report on Wednesday, June 3rd. Jefferies Financial Group boosted their price objective on shares of ODDITY Tech from $16.00 to $18.00 and gave the stock a "hold" rating in a research note on Wednesday. Needham & Company LLC reaffirmed a "hold" rating on shares of ODDITY Tech in a research report on Tuesday. Finally, Truist Financial increased their price target on ODDITY Tech from $16.00 to $18.00 and gave the company a "hold" rating in a research note on Thursday. Ten investment analysts have rated the stock with a Hold rating and four have assigned a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Reduce" and an average target price of $27.23.

ODDITY Tech Stock Performance

Shares of ODD stock traded down $0.31 on Thursday, hitting $16.17. The company's stock had a trading volume of 1,248,414 shares, compared to its average volume of 1,681,470. ODDITY Tech has a fifty-two week low of $9.25 and a fifty-two week high of $64.23. The company has a debt-to-equity ratio of 1.96, a quick ratio of 2.86 and a current ratio of 4.06. The stock's 50 day moving average is $14.97 and its 200-day moving average is $14.31. The company has a market capitalization of $931.13 million, a PE ratio of 20.59 and a beta of 2.38.

ODDITY Tech (NASDAQ:ODD - Get Free Report) last announced its quarterly earnings data on Wednesday, September 9th. The company reported $0.20 earnings per share for the quarter, beating the consensus estimate of $0.12 by $0.08. The firm had revenue of $180.52 million during the quarter, compared to analysts' expectations of $178.23 million. ODDITY Tech had a return on equity of 15.38% and a net margin of 6.97%.The company's quarterly revenue was down 24.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.92 EPS. Equities research analysts expect that ODDITY Tech will post -0.55 earnings per share for the current fiscal year.

Insider Transactions at ODDITY Tech

In other news, CFO Mann Drucker sold 7,717 shares of the business's stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $15.09, for a total value of $116,449.53. Following the transaction, the chief financial officer owned 116,135 shares in the company, valued at $1,752,477.15. The trade was a 6.23% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 172,454 shares of company stock valued at $2,592,610.

Hedge Funds Weigh In On ODDITY Tech

Several institutional investors have recently added to or reduced their stakes in ODD. Empowered Funds LLC purchased a new position in ODDITY Tech in the 1st quarter worth $1,275,000. Rice Hall James & Associates LLC bought a new position in shares of ODDITY Tech during the first quarter valued at about $3,533,000. Sparta 24 Ltd. purchased a new position in shares of ODDITY Tech in the first quarter worth about $1,082,000. Halter Ferguson Financial Inc. purchased a new position in shares of ODDITY Tech in the first quarter worth about $2,789,000. Finally, Teachers Retirement System of The State of Kentucky lifted its stake in shares of ODDITY Tech by 32.9% in the 1st quarter. Teachers Retirement System of The State of Kentucky now owns 121,185 shares of the company's stock valued at $1,621,000 after acquiring an additional 30,000 shares during the last quarter. Institutional investors own 35.88% of the company's stock.

Key Stories Impacting ODDITY Tech

Here are the key news stories impacting ODDITY Tech this week:

• Positive Sentiment: ODDITY reported adjusted EPS of $0.20, above the $0.12 analyst consensus, while revenue of approximately $181 million also exceeded estimates near $178 million. ODDITY Tech Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Management expects sequential improvement, with third-quarter revenue projected to decline only about 5% year over year and adjusted EBITDA forecast at $18 million-$20 million. Full-year revenue guidance of roughly $656 million was also above consensus. ODDITY Tech Reports Second Quarter Results
• Positive Sentiment: Growth in the SpoiledChild and METHODIQ brands, ongoing progress addressing IL MAKIAGE’s advertising-account issue, and approximately $163 million of year-to-date share repurchases provide potential support for the stock.
• Positive Sentiment: Truist and Jefferies both raised their price targets to $18, although each maintained a hold rating, suggesting modest upside but limited conviction. Truist Raises ODDITY Price Target
• Neutral Sentiment: Needham reaffirmed its hold rating, reinforcing a cautious analyst consensus despite the recent target increases. Needham Reaffirms Hold Rating
• Negative Sentiment: Second-quarter net revenue fell 25% to $181 million, while net income dropped to $13 million from $49 million and adjusted EBITDA declined to $13 million from $70 million. Adjusted EPS also fell from $0.92 to $0.20. ODDITY Tech Reveals Drop in Q2 Bottom Line
• Negative Sentiment: Barclays initiated or reiterated a sell rating, signaling concern that IL MAKIAGE’s technical advertising problems, falling margins, and weaker cash flow could persist. Barclays Gives ODDITY a Sell Rating

ODDITY Tech Company Profile

Oddity Tech Ltd. operates as a consumer tech company that builds digital-first brands for the beauty and wellness industries in the United States and internationally. It serves consumers worldwide through its AI-driven online platform, which uses data science, machine learning, and computer vision capabilities to identify consumer needs, and develop solutions in the form of beauty and wellness products. The company sells beauty, hair, and skin products under the IL MAKIAGE and SpoiledChild brands.

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