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

Key Points

• Morgan Stanley raised Estée Lauder’s price target to $112 from $102, implying 5.74% upside, but maintained an “equal weight” rating.
• Analyst sentiment remains cautious: the stock has a consensus “Hold” rating and an average price target of $105.24, despite several firms recently lifting their targets.
• Estée Lauder exceeded quarterly expectations, reporting $0.39 in EPS versus $0.32 expected and $3.64 billion in revenue versus $3.55 billion forecast; however, insiders sold about $7.4 million of shares over the past 90 days.

Estee Lauder Companies (NYSE:EL - Get Free Report) had its price objective lifted by analysts at Morgan Stanley from $102.00 to $112.00 in a report issued on Thursday, Benzinga reports. The firm currently has an "equal weight" rating on the stock. Morgan Stanley's price target would suggest a potential upside of 5.74% from the company's current price.

A number of other equities analysts have also weighed in on the stock. B. Riley Financial reiterated a "neutral" rating and issued a $100.00 price target (up from $85.00) on shares of Estee Lauder Companies in a research report on Thursday, August 20th. Wall Street Zen downgraded shares of Estee Lauder Companies from a "buy" rating to a "hold" rating in a research report on Saturday, September 26th. Jefferies Financial Group raised their price objective on shares of Estee Lauder Companies from $88.00 to $100.00 and gave the company a "hold" rating in a research report on Thursday, August 20th. Weiss Ratings upgraded shares of Estee Lauder Companies from a "sell (d)" rating to a "sell (d+)" rating in a research note on Friday, August 21st. Finally, Canaccord Genuity Group lifted their target price on shares of Estee Lauder Companies from $85.00 to $90.00 and gave the company a "hold" rating in a research note on Thursday, August 20th. Two research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $105.24.

Estee Lauder Companies Stock Performance

Shares of EL stock traded up $4.33 during mid-day trading on Thursday, reaching $105.92. 1,094,809 shares of the company's stock traded hands, compared to its average volume of 3,782,865. The company has a debt-to-equity ratio of 1.79, a quick ratio of 0.90 and a current ratio of 1.22. The firm has a market capitalization of $38.32 billion, a PE ratio of 216.06, a price-to-earnings-growth ratio of 1.16 and a beta of 1.27. Estee Lauder Companies has a 12 month low of $66.22 and a 12 month high of $121.64. The firm has a 50 day moving average price of $96.12 and a two-hundred day moving average price of $86.37.

Estee Lauder Companies (NYSE:EL - Get Free Report) last announced its earnings results on Wednesday, August 19th. The company reported $0.39 EPS for the quarter, topping analysts' consensus estimates of $0.32 by $0.07. The company had revenue of $3.64 billion for the quarter, compared to analysts' expectations of $3.55 billion. Estee Lauder Companies had a return on equity of 23.52% and a net margin of 1.21%. Estee Lauder Companies's revenue for the quarter was up 6.3% compared to the same quarter last year. During the same period last year, the firm earned $0.09 EPS. Estee Lauder Companies has set its FY 2027 guidance at 3.100-3.350 EPS. On average, research analysts forecast that Estee Lauder Companies will post 3.31 EPS for the current year.

Insider Buying and Selling at Estee Lauder Companies

In other news, Director Paul J. 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 sale, the director directly owned 417,300 shares of the company's stock, valued at approximately $40,966,341. The trade was a 12.20% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Charlene Barshefsky sold 3,775 shares of the business's stock in a transaction dated Wednesday, September 9th. The stock was sold at an average price of $98.82, for a total value of $373,045.50. Following the completion of the sale, the director owned 50,971 shares in the company, valued at $5,036,954.22. This represents a 6.90% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 75,105 shares of company stock valued at $7,423,185 in the last 90 days. Insiders own 11.54% of the company's stock.

Hedge Funds Weigh In On Estee Lauder Companies

Several institutional investors have recently added to or reduced their stakes in the company. IFP Advisors Inc raised its holdings in Estee Lauder Companies by 35.2% during the 2nd quarter. IFP Advisors Inc now owns 415 shares of the company's stock valued at $33,000 after buying an additional 108 shares during the period. Kestra Advisory Services LLC boosted its stake in Estee Lauder Companies by 3.1% during the first quarter. Kestra Advisory Services LLC now owns 4,520 shares of the company's stock worth $324,000 after buying an additional 134 shares during the period. QRG Capital Management Inc. boosted its stake in Estee Lauder Companies by 3.0% during the second quarter. QRG Capital Management Inc. now owns 4,569 shares of the company's stock worth $361,000 after buying an additional 135 shares during the period. Contravisory Investment Management Inc. increased its position in Estee Lauder Companies by 1.4% during the first quarter. Contravisory Investment Management Inc. now owns 11,691 shares of the company's stock valued at $839,000 after acquiring an additional 158 shares during the last quarter. Finally, State of Michigan Retirement System grew its holdings in Estee Lauder Companies by 0.3% during the 1st quarter. State of Michigan Retirement System now owns 64,538 shares of the company's stock valued at $4,632,000 after purchasing an additional 200 shares during the last quarter. Hedge funds and other institutional investors own 55.15% of the company's stock.

About Estee Lauder Companies

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

The company's products are distributed through department stores, specialty retailers, freestanding stores, e-commerce platforms, travel retail outlets and other channels. Estée Lauder serves consumers in numerous markets across the Americas, Europe, the Middle East and Africa, and the Asia-Pacific region.

Estée Lauder was founded in 1946 by Estée Lauder and her husband, Joseph Lauder, beginning with a small collection of skincare products.

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