KeyBanc Trims Target but Stays Bullish on Oddity's Beauty-Tech Play

Oddity Tech Ltd. (NASDAQ:ODD) is one of the most oversold mid-cap stocks to buy according to hedge funds.

On October 8, 2025, KeyBanc Capital Markets analyst Scott Schoenhaus maintained an Overweight rating on Oddity Tech but lowered the price target from $90 to $80.

The firm emphasized that Oddity remains in the early innings of a high-growth story, with potential upside driven by its proprietary hyperspectral + biotech stack and the upcoming Q4 launch of a medical-grade skin and body care brand.

Despite the target cut, KeyBanc remains bullish on the company’s ability to scale both top-line and margin expansion, noting that revenue growth above 20% and long-term EBITDA margins above 20% remain achievable.

The adjustment appears to hinge on broader multiple compression across mid-cap growth names rather than a deterioration in fundamentals. KeyBanc also highlighted that Oddity’s vertically integrated DTC model, combined with its aggressive R&D investments, positions it uniquely in the beauty-tech space.

Oddity Tech Ltd. (NASDAQ:ODD) is an AI-driven beauty and wellness platform behind brands like IL MAKIAGE and SpoiledChild. The company integrates machine learning, proprietary data, and biotech R&D to personalize consumer products in the skincare, cosmetics, and wellness space. Oddity went public in 2023 and has quickly become one of the most closely watched players in the digital beauty market.

While we acknowledge the potential of ODD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.