E.l.f. Beauty (ELF) is expected to deliver a Q1 beat and raise its guidance, mainly driven by continued strength in rhode brand, Oppenheimer said in a note Monday. The results are due Aug. 5.

However, the report said it is less certain whether initiatives to reaccelerate growth for its core brand have gained traction, as they are still in progress.

"We continue to see more aggressive testing of price cuts for the e.l.f. brand at leading retailers," the note said, adding that focus is now on any green shoots with the initiatives.

The note said Q1 is expected to be at least in line with Street expectations of 22.5% sales growth and EBITDA of $84 million as the company already set a low bar.

"ELF shares remain on our radar, with rhode upside potential and subdued investor sentiment representing key positives to the story," the report said. Oppenheimer kept its perform rating.

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