e.l.f. Beauty Inc. (ELF) shares are soaring 5.89% in pre-market trading, rebounding strongly after a significant decline in the previous session. The surge comes on the heels of a notable upgrade from Deutsche Bank, which has revised its rating on the beauty company from "hold" to "buy".

Deutsche Bank analysts view the recent pullback as an opportunity for investors, stating that the stock now presents an "attractive entry point with compelling 20%+ potential upside." This optimistic outlook follows a 9.5% drop in ELF's stock price on Thursday, which pushed the shares below the $100 mark following the company's FY1Q26 results.

The swift market reaction to Deutsche Bank's upgrade underscores the influence of analyst opinions on stock performance, especially in the volatile beauty and personal care sector. Despite the recent turbulence, the bank's positive stance suggests that e.l.f. Beauty's fundamentals remain strong, and the market may have overreacted to recent news. Investors will be closely watching the stock's performance in the coming trading sessions to see if this pre-market surge translates into sustained gains.