Morgan Stanley has reduced its price target for ODDITY Tech (NASDAQ: ODD) from $61.00 to $49.00, according to a report released on Friday. The investment firm currently maintains an “equal weight” rating on the stock. This adjustment follows a series of assessments from various analysts regarding the company’s stock performance.
On November 4, 2024, Zacks Research upgraded ODDITY Tech from a “strong sell” to a “hold” rating. Meanwhile, Weiss Ratings reaffirmed its “hold (c)” rating on October 8, 2024. Earlier, on September 23, 2024, JMP Securities reiterated a “market outperform” rating and set a higher price target of $80.00. In the same vein, KeyCorp adjusted its price target downwards from $90.00 to $80.00, while maintaining an “overweight” rating.
In yet another perspective, Jefferies Financial Group initiated coverage of ODDITY Tech on September 24, 2024, assigning a “buy” rating and a target price of $78.00. As it stands, seven analysts have rated the stock as a “buy,” while five have assigned a “hold” rating. According to MarketBeat, the consensus rating for ODDITY Tech is a “Moderate Buy,” with an average target price of $68.20.
Quarterly Earnings and Future Guidance
ODDITY Tech recently reported its quarterly earnings results on November 19, 2024. The company achieved earnings per share (EPS) of $0.40, surpassing the consensus estimate of $0.35 by $0.05. It reported revenues of $147.90 million, beating analyst expectations of $145.44 million. The company experienced a return on equity of 31.68% and a net margin of 14.11%. Notably, quarterly revenue showed a year-over-year increase of 24.3%, compared to $0.32 EPS in the same quarter of the previous year.
Looking forward, ODDITY Tech has set its guidance for the fourth quarter of 2025 at an EPS target of $0.110-$0.130 and a full-year 2025 guidance of $2.100-$2.120 EPS. Analysts predict that ODDITY Tech will report an average of $1.62 EPS for the current fiscal year.
Institutional Holdings and Investor Activity
Recent reports indicate significant activity among institutional investors regarding ODDITY Tech. Baillie Gifford & Co. increased its stake by 4.8% in the first quarter, now holding 6,255,326 shares valued at approximately $270.61 million. Similarly, Massachusetts Financial Services Co. raised its position by 1.7% during the third quarter, now owning 1,738,125 shares worth around $108.29 million.
Additionally, Granahan Investment Management LLC increased its holdings by 1.1%, while Bamco Inc. boosted its stake by 11.3%. Notably, Arrowstreet Capital Limited Partnership significantly increased its holdings by 8,711.3%, acquiring 835,315 shares valued at about $63.04 million.
Currently, institutional investors hold approximately 35.88% of ODDITY Tech’s stock, reflecting a growing interest in the company from the investment community. This trend suggests a potential confidence in the company’s future growth prospects despite the recent adjustments in price targets by analysts.
In summary, while ODDITY Tech faces revised price targets and mixed ratings from analysts, its strong quarterly performance and active institutional trading may indicate a resilient position in the tech-driven beauty and wellness sector.
