Morgan Stanley Lowers ODDITY Tech (NASDAQ:ODD) Price Target to $10.00

Key Points

• Morgan Stanley cut its price target on ODDITY Tech from $16 to $10 and kept an equal weight rating, implying limited near-term upside and some downside from the current share price.
• The analyst move comes amid a broadly cautious Street view: several firms have recently reiterated hold/sector-weight opinions or downgraded the stock, and MarketBeat shows an average rating of “Reduce” with a consensus target of $25.39.
• ODDITY Tech also reported a mixed quarter, with EPS missing estimates but revenue topping expectations; management’s Q2 revenue guidance of $168.8 million to $180.9 million came in below Wall Street expectations, adding to pressure on the stock.

ODDITY Tech (NASDAQ:ODD - Get Free Report) had its price objective lowered by analysts at Morgan Stanley from $16.00 to $10.00 in a note issued to investors on Wednesday,Benzinga reports. The firm currently has an "equal weight" rating on the stock. Morgan Stanley's price target indicates a potential downside of 4.70% from the stock's current price.

A number of other equities research analysts also recently commented on the stock. Jefferies Financial Group reaffirmed a "hold" rating and issued a $10.25 target price on shares of ODDITY Tech in a research report on Tuesday. KeyCorp reaffirmed a "sector weight" rating on shares of ODDITY Tech in a research report on Wednesday. Bank of America downgraded shares of ODDITY Tech from a "buy" rating to an "underperform" rating and set a $10.00 price objective for the company. in a research report on Thursday, February 26th. Zacks Research downgraded shares of ODDITY Tech from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, February 10th. Finally, Citizens Jmp downgraded shares of ODDITY Tech from a "strong-buy" rating to a "hold" rating in a report on Wednesday, February 25th. Nine investment analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Reduce" and an average price target of $25.39.

ODDITY Tech Stock Up 6.6%

NASDAQ ODD traded up $0.65 during mid-day trading on Wednesday, reaching $10.49. The stock had a trading volume of 2,837,078 shares, compared to its average volume of 1,934,796. ODDITY Tech has a 1 year low of $9.25 and a 1 year high of $78.28. The stock has a market cap of $604.19 million, a PE ratio of 5.85, a price-to-earnings-growth ratio of 1.83 and a beta of 2.47. The company has a fifty day moving average price of $13.96 and a 200 day moving average price of $26.24. The company has a debt-to-equity ratio of 1.47, a current ratio of 5.24 and a quick ratio of 4.06.

ODDITY Tech (NASDAQ:ODD - Get Free Report) last posted its earnings results on Tuesday, June 2nd. The company reported ($0.17) EPS for the quarter, missing analysts' consensus estimates of ($0.04) by ($0.13). ODDITY Tech had a return on equity of 29.84% and a net margin of 13.68%.The company had revenue of $197.94 million during the quarter, compared to the consensus estimate of $187.87 million. During the same period last year, the firm posted $0.69 EPS. The company's revenue for the quarter was down 26.2% on a year-over-year basis. On average, research analysts expect that ODDITY Tech will post 0.64 earnings per share for the current year.

Insider Activity

In related news, CFO Mann Lindsay Drucker sold 9,603 shares of the stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $13.44, for a total value of $129,064.32. Following the sale, the chief financial officer directly owned 77,709 shares of the company's stock, valued at $1,044,408.96. This represents a 11.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 28,807 shares of company stock worth $402,428.

Institutional Investors Weigh In On ODDITY Tech

Several institutional investors and hedge funds have recently made changes to their positions in ODD. Janus Henderson Group PLC lifted its stake in shares of ODDITY Tech by 115.0% in the 4th quarter. Janus Henderson Group PLC now owns 2,423,917 shares of the company's stock valued at $97,379,000 after purchasing an additional 1,296,551 shares during the last quarter. Baillie Gifford & Co. lifted its stake in shares of ODDITY Tech by 17.8% in the 4th quarter. Baillie Gifford & Co. now owns 7,122,641 shares of the company's stock worth $286,188,000 after acquiring an additional 1,076,921 shares during the period. Morgan Stanley lifted its stake in shares of ODDITY Tech by 13.9% in the fourth quarter. Morgan Stanley now owns 4,305,565 shares of the company's stock valued at $172,998,000 after purchasing an additional 525,481 shares during the period. Wellington Management Group LLP acquired a new stake in shares of ODDITY Tech in the third quarter valued at about $27,838,000. Finally, Altshuler Shaham Ltd lifted its stake in shares of ODDITY Tech by 364.7% in the fourth quarter. Altshuler Shaham Ltd now owns 500,714 shares of the company's stock valued at $20,119,000 after purchasing an additional 392,967 shares during the period. 35.88% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about ODDITY Tech

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

• Neutral Sentiment: KeyCorp reaffirmed its sector weight rating on ODDITY Tech, signaling a cautious but unchanged view on the stock. Benzinga report on KeyCorp rating
• Neutral Sentiment: Truist lowered its price target on ODDITY Tech from $18 to $12 and kept a hold rating, reflecting reduced expectations after the earnings update. Benzinga report on Truist price target cut
• Negative Sentiment: The Q1 earnings call and related coverage highlighted ad shock, weaker sales trends, and higher customer acquisition costs, all of which are pressuring sentiment on the stock. TipRanks earnings call article
• Negative Sentiment: Management also issued Q2 revenue guidance of $168.8 million to $180.9 million, below Wall Street’s roughly $192 million expectation, reinforcing worries about near-term growth. Company earnings release

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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