JPMorgan predicts Oddity's significant revenue growth in 2025
- JPMorgan initiated coverage on Oddity with an overweight rating and a $55 price target, indicating significant upside potential.
- Analyst Cory Carpenter expects Oddity to achieve over 20% revenue growth through online penetration and new product launches.
- Overall sentiment is bullish among analysts, with many rating Oddity as a strong buy, indicating a promising future for the company.
In January 2025, JPMorgan initiated coverage on the beauty and wellness company Oddity, giving it an 'overweight' rating and setting a $55 price target, reflecting a potential upside of over 17%. Analyst Cory Carpenter noted that Oddity is well-positioned to leverage the shift towards online beauty sales, which currently hold around a 20% market penetration. This growth is supported by the launch of two new brands by the end of 2025, with one being a telehealth platform aimed at addressing skin and body issues. Carpenter projected that the company's impressive gross margin of approximately 70% and an adjusted EBITDA margin of over 20% place it favorably among larger beauty industry players despite facing stock market volatility. Analyst enthusiasm for Oddity is evident as five out of eight Wall Street analysts have given it a strong buy or buy rating, reinforcing the belief that the company can navigate current market challenges. Oddity also plans to expand internationally, and Carpenter believes that the company's innovative product developments will further enhance its market position. The expected performance release date is set for March 11, 2025, with potential for exceeding analyst estimates on both adjusted EBITDA and revenue. Additionally, it has been noted that while the share prices of beauty stocks have been affected by industry concerns, Oddity has achieved financial success since its IPO, showing consistent growth in every quarter. This backdrop suggests that the company could present a unique investment opportunity at a time when other beauty brands are struggling, mainly due to a lack of exposure to the Asian market, which remains volatile. Carpenter's bullish outlook, alongside the anticipated product launches, points to strong revenue growth and profitability in the near future, further solidifying Oddity's status as a strong contender in the beauty sector. Mainly, the analyst's confident stance on Oddity comes from the combination of online market expansion, new innovative brands, and international growth plans. This collective strategy is expected to support revenue growth exceeding 20% over time, positioning Oddity favorably in the rapidly evolving beauty and wellness landscape, both domestically and globally.