Olaplex Holdings Inc. (NAS:OLPX) was upgraded to buy from hold at Jefferies with analysts advising that investors take advantage of the stock pullback. Jefferies has a price target of $25 on Olaplex shares. The stock is up 2% on Wednesday, trading at $17.27, but shares have sunk 33.3% over the past three months. Olaplex, which specializes in premium hair products that use proprietary "bonding" technology to repair damage, began trading in September 2021. "Competition continues to be the greatest threat to Olaplex's sustained growth," analysts led by Stephanie Wissink wrote in the note. Olaplex is now available at Ulta Beauty Inc. (NAS:ULTA) and Jefferies is upbeat about the partnership. "Based on checks, the bonding category as a whole continues to see impressive growth across brands," the note said. "Ulta offers a decent proxy for Olaplex's competitiveness vs alternatives."
Feb. 23, 2022, 10:50 a.m. EST