Evercore ISI downgraded its rating of Oddity Tech Ltd (NASDAQ: ODD) to In Line from Outperform on Thursday, significantly lowering its price target from $80.00 to $23.00, according to reports from Investing.com and TipRanks.
The downgrade follows a “surprising” fourth-quarter report from Oddity, the parent company of IL MAKIAGE and SpoiledChild, and reflects growing concerns about the company’s reliance on advertising platforms and the visibility of its future performance. Evercore ISI analyst Mark Mahaney communicated these concerns to investors, noting that while the stock’s recent decline “seems steep,” the underlying issues are “valid.”
The shift in rating also comes amid a broader wave of analyst adjustments. KeyBanc reduced its price target for Oddity Tech due to challenges related to advertising platforms, while Barclays lowered its rating citing the company’s dependence on advertising algorithms. Needham similarly downgraded the stock to Hold, also attributing the decision to advertising-related problems.
Earlier, Evercore ISI had maintained an Outperform rating on Oddity Tech, with a price target of $80.00, citing strong early traction for new product lines and an attractive valuation. This prior assessment highlights the rapid change in investor sentiment surrounding the company.
Evercore ISI also removed Oddity from its “Tactical Outperform” list, though the firm acknowledged the company’s “strong” third-quarter results, which modestly exceeded expectations for both revenue and EBITDA.
