Honest Co. Rises on Bullish Analyst Initiations

All six firms with coverage of Honest have a buy or equivalent rating on the company.
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The Honest Company Inc.  (HNST) - Get Report got a boost Tuesday after numerous analyst firms initiated mostly positive coverage of the company, which went public in early May

Analysts at Guggenheim, Jefferies, Citi and Morgan Stanley were all bullish in their coverage initiations of the company, leading the stock higher 5.3% to $16.62 in early trading Tuesday. 

Here's what those analysts said:

Analysts at Guggenheim initiated coverage with a buy rating and an $18 price target. "While we identify several challenges, including margin expansion potential, we are projecting a peer-leading 16% annualized top-line growth rate through FY23 with positive EBITDA beginning next year," analyst Laurent Grandet said. 

Jefferies initiated coverage with a buy rating and a $19 price target. "Honest's mono brand approach to clean, green, effective, and affordable products is unique, providing an efficacy-consistent alternative to conventional competitors," Stephanie Wissink said. 

Read More: Why Jim Cramer Isn't Interested in Honest Co.

Wissink noted that "HNST advantages are social & digital and its authentic, good for people & planet brand across essential, daily use classifications complemented by a pipeline of innovation in clean formulations & simple, design-rich form factors."

Morgan Stanley began coverage of Honest with an overweight rating and $17.50 price target on the strength of the company's "strong growth story" in the natural product category.

Citi also started the company with a buy rating, putting a $20 price target on the stock. 

All six firms with coverage of the company have a buy rating or its equivalent on the stock, according to Bloomberg. 

Read More: Honest Co. Continues to Slide After Jump in Market Debut