As the consumer products space becomes increasingly disrupted by the popularity of small startup brands and off-price retail, the mature global cosmetics industry is also in need of a face lift. Despite a decline in consumer spending and shifting shopping habits in the recent period, analysts at Piper Jaffray remain bullish on the beauty supply sector, pointing out leaders such as the Estee Lauder Companies Inc. (EL), e.l.f. Beauty Inc. (ELF) and Ulta Beauty Inc. (ULTA) as those best positioned to meet the new demand. (See also: Study Shows Surge in Demand for 'Natural' Products.)

Ahead of Estee Lauder’s earnings slated for May 3, analysts at Piper Jaffray initiated coverage on EL stock at overweight. The investment firm set a price target of $93, reflecting a 7% upside from close the day prior and compared to the Street’s average 12-month price target of $93.15. The New York City-based cosmetics giant has seen its stock rally about 14% year to date (YTD). Shares closing on Monday at a price of $87.18 reflect an approximate 7.7% decline over the past year.

Selfie Generation Demands More Makeup

As Piper Jaffray analysts are upbeat on the long-term prospects for the overall cosmetics industry, they also issued overweight ratings on shares of Estee Lauder’s peers Ulta and e.l.f. Beauty, along with a $314 and $34 price targets, respectively. Analysts foresee an approximate 10.9% upside on shares of Oakland, Calif.-based e.l.f., and a 23.3% upside for Bolingbrook, Ill.-based Ulta.

As the “selfie generation” seeks out products to stay presentable at all times, and with video technology and photo sharing platforms adding pressure on consumers to step up their cosmetics game, analysts suggest this quarter could be stellar for American beauty industry leaders. (See also: Cosmetics Industry Disruptors Target Millennials.)