E.l.f. Beauty (ELF) could issue a conservative fiscal 2026 outlook amid "challenged" underlying category trends, UBS Securities said in a Tuesday note.

The company is set to release its fiscal Q4 results on May 28 and is expected to release its guidance for the next 12 months "earlier than most," according to the investment firm.

"Most expect a challenging F4Q print itself, but much of the focus will be on the FY26 guidance and whether the sustained momentum observed in the tracked data is sustainable looking ahead," UBS said.

UBS said it now estimates a mid-single digit EPS growth in fiscal 2026, up from its previous forecast of a low-single digit decline, and a top-line growth of high-single digit to low-double digits. The investment firm attributed its increased estimates to lower tariffs, improved trends in the US, and continued international growth.

UBS raised its price target on the stock to $84 from $59, while maintaining a neutral rating.

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