The Honest Company beats Q2 earnings estimates, prompting a price target hike to $5.70 by Morgan Stanley.

The Honest Company reported Q2 earnings of $0.04 per share, doubling expectations, despite a 10.9% revenue drop due to strategic business exits. Organic revenue grew 6.7%, showing strength in core products, while profitability improved with a gross margin of 48.4% and net income of $10.7 million. Following these results, Morgan Stanley raised its price target to $5.70, indicating a potential 10.9% upside from the current stock price. The company also raised its full-year financial outlook, signaling confidence in continued growth.