Estee Lauder Companies (NYSE:EL) Stock Price Expected to Rise, Citigroup Analyst Says

Key Points

• Citigroup raised Estée Lauder’s price target to $121 from $115 and maintained a “buy” rating, implying approximately 14.27% upside from the previous close.
• Recent quarterly results exceeded expectations: EPS was $0.72 versus $0.51 expected, while revenue rose 6.7% year over year to $3.72 billion. Analysts collectively rate the stock “Moderate Buy,” with a consensus target of $109.62.
• The recovery is showing momentum, supported by strong fragrance sales, margin expansion and improved demand, but elevated valuation, cash outflows and weaker makeup and hair-care sales remain risks.

Estee Lauder Companies (NYSE:EL - Get Free Report) had its price objective raised by stock analysts at Citigroup from $115.00 to $121.00 in a research report issued on Tuesday, Benzinga reports. The firm presently has a "buy" rating on the stock. Citigroup's target price indicates a potential upside of 14.27% from the stock's previous close.

EL has been the subject of a number of other research reports. UBS Group lifted their price objective on Estee Lauder Companies from $104.00 to $112.00 and gave the company a "neutral" rating in a research note on Tuesday. HSBC upped their target price on Estee Lauder Companies from $87.00 to $95.00 and gave the stock a "hold" rating in a research note on Thursday, August 20th. TD Cowen lifted their price target on Estee Lauder Companies from $100.00 to $115.00 and gave the company a "hold" rating in a research report on Friday. Wall Street Zen downgraded Estee Lauder Companies from a "buy" rating to a "hold" rating in a report on Saturday, September 26th. Finally, Daiwa Securities Group upped their price objective on Estee Lauder Companies from $83.00 to $99.00 in a research report on Tuesday, August 25th. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $109.62.

Estee Lauder Companies Stock Performance

Estee Lauder Companies stock traded up $1.12 during mid-day trading on Tuesday, reaching $105.89. 2,235,481 shares of the company traded hands, compared to its average volume of 3,799,588. The firm's fifty day moving average is $100.42 and its two-hundred day moving average is $91.86. The company has a market capitalization of $38.31 billion, a price-to-earnings ratio of 215.71, a price-to-earnings-growth ratio of 1.59 and a beta of 1.27. Estee Lauder Companies has a fifty-two week low of $66.22 and a fifty-two week high of $121.64. The company has a debt-to-equity ratio of 1.79, a current ratio of 1.22 and a quick ratio of 0.90.

Estee Lauder Companies (NYSE:EL - Get Free Report) last posted its quarterly earnings data on Monday, November 2nd. The company reported $0.72 EPS for the quarter, topping the consensus estimate of $0.51 by $0.21. The business had revenue of $3.72 billion during the quarter, compared to the consensus estimate of $3.65 billion. Estee Lauder Companies had a net margin of 1.21% and a return on equity of 23.52%. The business's revenue for the quarter was up 6.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.32 earnings per share. On average, equities research analysts expect that Estee Lauder Companies will post 3.32 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Paul Fribourg sold 58,000 shares of Estee Lauder Companies stock in a transaction dated Monday, September 14th. The stock was sold at an average price of $98.17, for a total value of $5,693,860.00. Following the completion of the transaction, the director owned 417,300 shares in the company, valued at $40,966,341. The trade was a 12.20% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Charlene Barshefsky sold 3,775 shares of the stock in a transaction that occurred on Wednesday, September 9th. The stock was sold at an average price of $98.82, for a total value of $373,045.50. Following the transaction, the director owned 50,971 shares in the company, valued at $5,036,954.22. This represents a 6.90% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 75,105 shares of company stock worth $7,423,185 in the last ninety days. Company insiders own 11.54% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in EL. Pictet Asset Management Holding SA grew its holdings in shares of Estee Lauder Companies by 4.7% during the 3rd quarter. Pictet Asset Management Holding SA now owns 1,027,993 shares of the company's stock worth $95,367,000 after purchasing an additional 46,325 shares during the period. Parallel Advisors LLC raised its holdings in Estee Lauder Companies by 18.6% in the 3rd quarter. Parallel Advisors LLC now owns 4,468 shares of the company's stock valued at $415,000 after buying an additional 700 shares during the period. Alps Advisors Inc. lifted its position in Estee Lauder Companies by 4.7% in the third quarter. Alps Advisors Inc. now owns 2,795 shares of the company's stock valued at $259,000 after buying an additional 125 shares during the last quarter. CenterBook Partners LP lifted its position in Estee Lauder Companies by 77.6% in the third quarter. CenterBook Partners LP now owns 43,843 shares of the company's stock valued at $4,067,000 after buying an additional 19,151 shares during the last quarter. Finally, Calamos Advisors LLC boosted its stake in Estee Lauder Companies by 1.1% during the third quarter. Calamos Advisors LLC now owns 102,019 shares of the company's stock worth $9,464,000 after buying an additional 1,107 shares during the period. Hedge funds and other institutional investors own 55.15% of the company's stock.

Estee Lauder Companies News Roundup

Here are the key news stories impacting Estee Lauder Companies this week:

• Positive Sentiment: Earnings and revenue exceeded expectations. Fiscal Q1 EPS was $0.72 versus the $0.51 consensus, while revenue rose 6.7% year over year to $3.72 billion, ahead of estimates of $3.65 billion. Estée Lauder earnings report
• Positive Sentiment: The turnaround is showing operating leverage. Fragrance sales increased roughly 19% to 20%, margins expanded, and operating income more than doubled as costs grew slowly relative to sales. China demand and Beauty Reimagined initiatives also supported the quarter. Estée Lauder earnings and outlook
• Positive Sentiment: Management raised its fiscal 2027 outlook. The company now expects 4% to 5.5% organic sales growth, revenue of $15.8 billion to $16.0 billion, and EPS of $3.20 to $3.45. The revenue range is above the $15.7 billion consensus, signaling confidence heading into the holiday season. Estée Lauder raises forecasts
• Positive Sentiment: Analysts increased their price targets. RBC raised its target to $126 while maintaining an outperform rating. Morgan Stanley lifted its target to $118, and UBS raised its target to $112; both retained more cautious equal-weight or neutral ratings. Wells Fargo increased its target to $110.
• Neutral Sentiment: The dividend remains intact. Estée Lauder declared a quarterly dividend of $0.35 per share, or $1.40 annualized, representing a yield of approximately 1.3%.
• Negative Sentiment: Options activity points to hedging or bearish positioning. Investors traded approximately 40,819 put options, about 767% above typical volume, potentially reflecting concerns about downside risk after the recent rally.
• Negative Sentiment: Valuation and cash flow remain risks. Commentary highlights the stock’s elevated earnings multiple and cash outflows, while management expects growth to be weighted toward the first half of the year. Makeup and hair-care sales were also nearly flat, leaving the recovery dependent on fragrance and continued margin gains.

About Estee Lauder Companies

The Estée Lauder Companies Inc NYSE: EL is a global prestige beauty company that develops, markets and sells skincare, makeup, fragrance and hair-care products. Its portfolio includes brands such as Estée Lauder, Clinique, M·A·C, La Mer, Jo Malone London, Aveda, Bobbi Brown Cosmetics, Tom Ford Beauty, Le Labo and The Ordinary.

Founded in 1946 by Estée and Joseph Lauder, the company began with four skincare products and has expanded into a multinational beauty business. Its products are sold through department and specialty stores, beauty retailers, brand-operated stores, e-commerce platforms, salons, spas and other distribution channels.

The Estée Lauder Companies serves consumers in markets across the Americas, Europe, the Middle East and Africa, and Asia-Pacific.

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