New platform launches and possible product releases for Oddity in the coming months could spell upside for shares, according to JPMorgan. The firm initiated coverage on the beauty and wellness stock with an overweight rating and a $55 price target. That reflects more than 17% upside from Thursday’s close. “We believe Oddity is well positioned to capitalize on the shift of beauty online (~20% penetration), which, combined with new brand launches and other growth drivers such as international expansion, should support 20%+ revenue growth over time,” analyst Cory Carpenter wrote in a Friday note to clients. “Oddity has an attractive profit profile, with ~70% gross margin and ~20%+ adj. EBITDA margin that rival those of more scaled beauty peers.” With the expected launch of two new brands in the second half of 2025 – namely, Brand 3 and Brand 4 – Carpenter said this will be an “investment year” for the company. While the company has yet to disclose more details on Brand 4, it said following its latest quarterly results that Brand 3 will be a telehealth platform targeted for people with skin and body issues. “We are confident in Oddity sustaining 20%+ growth over time, driven by the shift of beauty online, new brand launches, and international expansion,” he said. “We view Labs product innovation to be a source of upside.” The analyst also noted that while online penetration in the beauty and personal care market lags other categories at around 20%, he thinks it can double over time — seeing “beauty average order value, profitability, and purchase frequency supportive of positive unit economics.” Notably, Carpenter also said that beauty industry concerns have caused share overhang, even with the company exceeding its financial outlook in every quarter since its initial public offering. “We think this creates an attractive entry point, with Oddity lacking exposure to China and trading at a discount to beauty and DTC peers despite best-in-class growth and profit,” he continued. Looking ahead, the analyst believes the company should post a strong fourth-quarter earnings print, with adjusted EBITDA and revenue coming in slightly above analysts’ expectations. Oddity is scheduled to report those results on March 11. A majority of analysts covering the Israel-based company on Wall Street have taken a bullish stance on the name, with five out of the eight having a strong buy or buy rating, per LSEG data. Meanwhile, its consensus target of roughly $52 signals strong gains ahead for the stock, implying nearly 12% upside potential. ODD 3M mountain ODD, 3-month The stock gained more than 2% in the premarket Friday following Carpenter’s call. Over the past three months, shares have substantially outperformed the broader market, rising around 22%.
