Estee Lauder Companies (NYSE:EL) Stock Price Expected to Rise, Royal Bank Of Canada Analyst Says

Key Points

• Royal Bank of Canada raised Estée Lauder’s price target to $126 from $120 and maintained an “outperform” rating, implying approximately 18.7% upside from the reported share price.
• Estée Lauder posted fiscal Q1 adjusted EPS of $0.72 versus the $0.51 consensus and revenue of $3.72 billion, up 6.7% year over year. Fragrance led growth, while stronger margins and cost controls helped more than double operating income.
• Management raised its fiscal 2027 outlook, projecting 4%–5.5% organic sales growth and EPS of $3.20–$3.45, though investors remain cautious about valuation, cash outflows, execution risks and weaker makeup and hair-care performance.

Estee Lauder Companies (NYSE:EL - Get Free Report) had its price target raised by equities researchers at Royal Bank Of Canada from $120.00 to $126.00 in a research report issued to clients and investors on Tuesday, Benzinga reports. The firm currently has an "outperform" rating on the stock. Royal Bank Of Canada's target price would suggest a potential upside of 18.72% from the company's current price.

EL has been the subject of a number of other reports. HSBC lifted their price objective on Estee Lauder Companies from $87.00 to $95.00 and gave the company a "hold" rating in a report on Thursday, August 20th. Raymond James Financial lifted their price target on shares of Estee Lauder Companies from $110.00 to $115.00 and gave the company a "strong-buy" rating in a report on Thursday, August 20th. Wells Fargo & Company upped their price objective on shares of Estee Lauder Companies from $95.00 to $110.00 and gave the stock an "equal weight" rating in a research note on Tuesday. UBS Group dropped their price objective on shares of Estee Lauder Companies from $106.00 to $104.00 and set a "neutral" rating for the company in a report on Thursday, October 15th. Finally, Telsey Advisory Group boosted their target price on Estee Lauder Companies from $90.00 to $108.00 and gave the stock a "market perform" rating in a report on Thursday, August 20th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Estee Lauder Companies presently has an average rating of "Moderate Buy" and a consensus target price of $108.08.

Estee Lauder Companies Stock Performance

EL traded up $1.37 during trading on Tuesday, reaching $106.14. 724,635 shares of the company's stock were exchanged, compared to its average volume of 3,791,559. The company has a market capitalization of $38.40 billion, a P/E ratio of 216.07, a PEG ratio of 1.59 and a beta of 1.27. The company has a quick ratio of 0.90, a current ratio of 1.22 and a debt-to-equity ratio of 1.79. The business has a 50 day moving average price of $100.42 and a 200 day moving average price of $91.86. Estee Lauder Companies has a fifty-two week low of $66.22 and a fifty-two week high of $121.64.

Estee Lauder Companies (NYSE:EL - Get Free Report) last released its quarterly earnings data on Monday, November 2nd. The company reported $0.72 EPS for the quarter, topping analysts' consensus estimates of $0.51 by $0.21. The company 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 firm's revenue for the quarter was up 6.7% compared to the same quarter last year. During the same period last year, the firm earned $0.32 EPS. As a group, analysts predict that Estee Lauder Companies will post 3.32 earnings per share for the current fiscal year.

Insider Activity

In other news, VP Rashida La Lande sold 7,766 shares of the firm's stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $103.32, for a total transaction of $802,383.12. Following the completion of the transaction, the vice president directly owned 14,357 shares of the company's stock, valued at $1,483,365.24. This trade represents a 35.10% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Paul J. Fribourg sold 58,000 shares of the firm's stock in a transaction dated Monday, September 14th. The shares were 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 of the company's stock, valued at $40,966,341. The trade was a 12.20% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 75,105 shares of company stock valued at $7,423,185 in the last quarter. Company insiders own 11.54% of the company's stock.

Institutional Trading of Estee Lauder Companies

Hedge funds and other institutional investors have recently modified their holdings of the stock. Bank of America Corp DE raised its holdings in shares of Estee Lauder Companies by 950.9% during the 1st quarter. Bank of America Corp DE now owns 13,843,765 shares of the company's stock worth $993,567,000 after buying an additional 12,526,471 shares in the last quarter. Ninety One UK Ltd bought a new stake in shares of Estee Lauder Companies during the 3rd quarter worth $134,551,000. KBC Group NV boosted its stake in Estee Lauder Companies by 910.3% in the first quarter. KBC Group NV now owns 707,692 shares of the company's stock valued at $50,792,000 after buying an additional 637,641 shares in the last quarter. Amundi boosted its stake in Estee Lauder Companies by 33.8% in the first quarter. Amundi now owns 1,909,911 shares of the company's stock valued at $137,074,000 after buying an additional 482,185 shares in the last quarter. Finally, Assenagon Asset Management S.A. boosted its stake in Estee Lauder Companies by 1,629.2% in the second quarter. Assenagon Asset Management S.A. now owns 412,570 shares of the company's stock valued at $32,572,000 after buying an additional 388,711 shares in the last quarter. Institutional investors own 55.15% of the company's stock.

Key Stories Impacting Estee Lauder Companies

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

• Positive Sentiment: Fiscal Q1 adjusted earnings were $0.72 per share, well above the roughly $0.51–$0.52 consensus, while revenue rose 6.7% year over year to $3.72 billion, ahead of the $3.65 billion estimate. Fiscal 2027 First Quarter Results
• Positive Sentiment: Management raised its fiscal 2027 outlook, calling for 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 current consensus estimate, while the EPS midpoint is broadly in line. Fiscal 2027 Outlook
• Positive Sentiment: Fragrance was the key growth engine, with sales increasing roughly 19% to 20% across price tiers. Stronger margins and disciplined costs more than doubled operating income, supporting the company’s “Beauty Reimagined” turnaround. Q1 Earnings Beat
• Neutral Sentiment: Estee Lauder declared a quarterly dividend of $0.35 per share, or $1.40 annualized, with payment scheduled for December 15 to shareholders of record November 30. Dividend Announcement
• Negative Sentiment: Investors appear concerned that the recovery is already reflected in the stock’s valuation. Analysts also highlighted cash outflows and execution risks, while management said growth may be front-loaded; the full-year organic-growth target remains below the first quarter’s roughly 6% pace. Makeup and hair care were comparatively weak. Earnings, Cash Outflows and Valuation

Estee Lauder Companies Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.