Piper Sandler lowered its price target on e.l.f. Beauty, Inc. (NYSE: ELF) to $85.00 from $100.00 while maintaining a Neutral rating, sending shares down more than 2% intra-day on Monday.

The firm cited intensifying competition as rivals regained momentum. Based on SPINS data through November 30, Piper Sandler said e.l.f.'s market share gains slowed in the second quarter of fiscal 2026 but showed improvement so far in the third quarter as product launches strengthened. However, competitors such as L'Oréal, NYX, and Maybelline were also increasing innovation efforts, raising the bar for differentiation.

The analyst raised its third-quarter fiscal 2026 estimate for core e.l.f. sales growth to 5%, above the company's annual guidance of 3%-4%, but lowered its fourth-quarter forecast to a 1% decline due to a challenging comparison. With shares rebounding from November lows, Piper Sandler said further upside appeared priced in.

The reduced price target reflected a valuation of 16x fiscal 2027 EBITDA, down from 18x previously. The firm noted that the stock's current 26x P/E multiple sat near the midpoint of its recent 18x-35x range and could face compression if shipments continued to trail consumption trends into fiscal 2027.