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.
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.