09.09.08
An analyst said natural cosmetics company Bare Escentuals Inc. is poised to gain from demand for mineral makeup, but warned that competition remains stiff as other companies enter the sector, according to Forbes.
Goldman Sachs analyst Andrew Sawyer, in a client note, outlined a number of different scenarios. Sawyer, who rates the stock "Neutral," said growth in mineral makeup is likely to be driven by consumers' growing preference for natural products, compared with traditional makeup.
However, Sawyer said larger, traditional cosmetics companies are investing in the trend, likely to take away market share from Bare Escentuals. In another scenario, Sawyer said demand abroad for the company's products will remain solid, with stabilizing sales in the U.S. on product innovation.
"The most bullish case assumes that Bare Escentuals replicates its U.S. success in its current international markets, which have a population of just over 400 million people," Sawyer wrote in a client note.
Another possibility, Sawyer said, is that U.S. sales remain healthy, with moderate success overseas and the caveat that mineral makeup market share in the U.S. will require more marketing spending.
Goldman Sachs analyst Andrew Sawyer, in a client note, outlined a number of different scenarios. Sawyer, who rates the stock "Neutral," said growth in mineral makeup is likely to be driven by consumers' growing preference for natural products, compared with traditional makeup.
However, Sawyer said larger, traditional cosmetics companies are investing in the trend, likely to take away market share from Bare Escentuals. In another scenario, Sawyer said demand abroad for the company's products will remain solid, with stabilizing sales in the U.S. on product innovation.
"The most bullish case assumes that Bare Escentuals replicates its U.S. success in its current international markets, which have a population of just over 400 million people," Sawyer wrote in a client note.
Another possibility, Sawyer said, is that U.S. sales remain healthy, with moderate success overseas and the caveat that mineral makeup market share in the U.S. will require more marketing spending.