E.l.f. Beauty (ELF - Get Report) is set to release its 2016 third quarter results after Thursday's closing bell.

Analysts surveyed by FactSet are looking for the Oakland, CA-based discount cosmetics company to post break-even earnings per share on revenue of $53.9 million.

E.l.f., which stands for eyes, lips and face, went public on September 22. The company, whose products are mostly $6 or less, has standalone stores and also sells its makeup at Target (TGT), Walmart Stores (WMT), CVS Health (CVS) and Gap's (GPS) Old Navy chain.

JPMorgan recently initiated coverage of the stock with a "neutral" rating and $28 price target.

"We have a bullish multi-year view on E.l.f. shares given mid-single-digit industry growth and attractive demographics, additional distribution opportunities, and its website that lowers marketing spend and enables an asset-light model with fast go-to-market innovation," the firm wrote in an analyst note.

With the increased use of technology to communicate and use of selfies, makeup has been on the rise, JPMorgan said.

"We view the company as a clear disruptor in an attractive industry. Its prestige-inspired, yet affordable and fast-to-market products are the perfect combination for young consumers and heavy users of makeup - in particular millennials," the firm contended.

About 60% of E.l.f.'s clients are millennials and 54% are diverse, mainly Hispanics, African Americans and Asians, according to the firm.

But JPMorgan believes the third quarter likely will be "tough," so the firm recommends waiting for a better entry point or a catalyst. The firm is expecting sales to increase 5.5% year-over-year as the company cycles against a very tough comparison of 56% growth a year ago.

The stock was lower in early-afternoon trading today.