Shares of Honest Co. Inc.
HNST,
+6.97%
bounced back above its initial public offering price in afternoon trading Tuesday, after J.P. Morgan analyst Andrea Teixeira made a bullish call on the health and wellness company founded by Jessica Alba, saying it represented a "highly attractive and unique" growth opportunity. Teixeira initiated Honest at overweight and with a stock price target of $18, which is 9.1% above current prices. The stock was up 4.6% at $16.50, putting it on track for just the sixth close above the $16 IPO price since the company went public on May 5, and the first close above it in six sessions. The company is a "pure-play focus" in the clean and natural market, digital foundation, growing distribution footprint and the potential to expand internationally," Teixeira wrote in a note to clients. "As such, we think there is a relatively high degree of visibility into double-digit topline growth, should translate into an improving profitability profile as the company gains operating leverage across the P&L [profit and loss] on scale benefits." J.P. Morgan was a lead underwriter of Honest's IPO. The stock has tumbled 28.3% since it closed at $23 on the first day of trading, while the Renaissance IPO ETF
IPO,
+0.05%
has gained 6.6% over the same time and the S&P 500
SPX,
-0.05%
has edged up 0.8%.