Honest Company's Underlying Brand Demand & New CEO's Experience Should Provide Substantial Benefits, Says Analyst

  • Telsey Advisory Group analyst Dana Telsey reiterated an Outperform rating on the shares of The Honest Company Inc HNST with a price target of $6.00.
  • Yesterday, the company announced the appointment of CPG industry veteran Carla Vernón as its new Chief Executive Officer, effective January 9, 2023. 
  • Vernón will replace Nick Vlahos, who served in the role for nearly six years and will remain on the company's Board of Directors.
  • Most recently, Vernón was the Vice President of Consumables Categories at Amazon.Com, Inc. AMZN, leading babycare, household products, food, beverages, health and wellness, and beauty, and driving double-digit growth at the Amazon online stores.
  • At Amazon, Vernón worked closely with HNST and its senior leadership team to support its Honest Lifestyle Platform, the analyst noted.
  • The analyst believes Vernón's experience, especially in e-commerce, should provide substantial benefits to Honest as it maneuvers a challenging macro and supply chain environment while focusing on driving profitable growth.
  • In the analyst's view, with a growing retail distribution network and a strong e-commerce presence, Vernón can leverage her experience to support topline growth while improving the bottom line.
  • The analyst specified that the brand is well-positioned in an attractive health and wellness category, appealing to the modern conscious consumer with a strong digital presence.
  • Price Action: HNST shares are trading higher by 6.31% at $3.20 on the last check Wednesday.
  • Photo Via Company
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