B. Riley Financial Reiterates "Neutral" Rating for Estee Lauder Companies (NYSE:EL)

Key Points

• B. Riley Financial reaffirmed a “neutral” rating on Estée Lauder, raising its price target from $85 to $100—only about 3% above the prior close.
• Estée Lauder exceeded quarterly expectations, reporting $3.64 billion in revenue and $0.39 in EPS, while revenue increased 6.3% year over year. Management also maintained fiscal 2027 EPS guidance of $3.10–$3.35 and cited progress on its cost-reduction turnaround plan.
• Despite improving results and several bullish analyst targets, the stock carries a consensus “hold” rating with a $97.50 target; valuation risk remains as shares trade at elevated forward earnings multiples relative to expected growth.

Estee Lauder Companies (NYSE:EL - Get Free Report)'s stock had its "neutral" rating reaffirmed by research analysts at B. Riley Financial in a report released on Thursday,Benzinga reports. They presently have a $100.00 target price on the stock, up from their previous target price of $85.00. B. Riley Financial's price objective indicates a potential upside of 2.96% from the company's previous close.

EL has been the topic of several other research reports. Citigroup raised their price target on Estee Lauder Companies from $92.00 to $110.00 and gave the stock a "buy" rating in a report on Friday, May 22nd. The Goldman Sachs Group initiated coverage on Estee Lauder Companies in a research report on Monday, June 22nd. They issued a "buy" rating and a $100.00 target price on the stock. TD Cowen raised their target price on Estee Lauder Companies from $90.00 to $100.00 and gave the company a "hold" rating in a research note on Thursday. Royal Bank Of Canada reissued an "outperform" rating and set a $111.00 price target on shares of Estee Lauder Companies in a report on Monday. Finally, Barclays lifted their price objective on shares of Estee Lauder Companies from $75.00 to $80.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 21st. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $97.50.

Estee Lauder Companies Stock Performance

Shares of NYSE:EL traded down $0.89 during trading on Thursday, reaching $97.12. 732,712 shares of the company's stock traded hands, compared to its average volume of 3,929,974. The stock has a market capitalization of $35.14 billion, a P/E ratio of -138.62, a price-to-earnings-growth ratio of 0.66 and a beta of 1.25. Estee Lauder Companies has a 12 month low of $66.22 and a 12 month high of $121.64. The company has a 50 day moving average of $84.40 and a 200-day moving average of $86.67. The company has a debt-to-equity ratio of 1.71, a current ratio of 1.27 and a quick ratio of 0.94.

Estee Lauder Companies (NYSE:EL - Get Free Report) last issued its earnings results on Wednesday, August 19th. The company reported $0.39 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.32 by $0.07. Estee Lauder Companies had a negative net margin of 1.67% and a positive return on equity of 20.66%. The firm had revenue of $3.64 billion for the quarter, compared to analysts' expectations of $3.55 billion. During the same quarter last year, the company posted $0.09 earnings per share. Estee Lauder Companies's revenue was up 6.3% on a year-over-year basis. Estee Lauder Companies has set its FY 2027 guidance at 3.100-3.350 EPS. On average, equities analysts expect that Estee Lauder Companies will post 2.41 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in shares of Estee Lauder Companies by 4.8% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 25,898 shares of the company's stock worth $1,709,000 after buying an additional 1,177 shares in the last quarter. NewEdge Advisors LLC boosted its stake in Estee Lauder Companies by 33.4% during the first quarter. NewEdge Advisors LLC now owns 6,992 shares of the company's stock valued at $462,000 after buying an additional 1,749 shares in the last quarter. Empowered Funds LLC raised its position in Estee Lauder Companies by 24.1% in the first quarter. Empowered Funds LLC now owns 4,619 shares of the company's stock worth $305,000 after acquiring an additional 898 shares in the last quarter. EverSource Wealth Advisors LLC lifted its holdings in Estee Lauder Companies by 23.2% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 997 shares of the company's stock valued at $81,000 after acquiring an additional 188 shares during the last quarter. Finally, First Trust Advisors LP boosted its position in shares of Estee Lauder Companies by 55.5% during the 2nd quarter. First Trust Advisors LP now owns 13,522 shares of the company's stock valued at $1,093,000 after purchasing an additional 4,826 shares in the last quarter. Institutional investors and hedge funds own 55.15% of the company's stock.

Key Estee Lauder Companies News

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

• Positive Sentiment: Strong quarterly performance: Fiscal Q4 revenue rose approximately 6% year over year to $3.64 billion, exceeding the $3.55 billion analyst consensus. Adjusted EPS was $0.39, ahead of estimates of $0.32 and up from $0.09 a year earlier. Growth was supported by Skin Care, Fragrance, China and broad-based regional improvement. Estee Lauder Q4 Earnings Beat Estimates, Sales Up 6% Y/Y
• Positive Sentiment: Improved fiscal 2027 outlook: Management affirmed its 3% to 5% organic sales-growth target and raised its adjusted operating-margin outlook to 12.7%–13.5%. Fiscal 2027 adjusted EPS guidance of $3.10–$3.35 is broadly consistent with the $3.18 consensus, while the outlook reflects stronger profitability and sustained premium beauty demand. Estee Lauder forecasts annual profit above estimates on strong China demand
• Positive Sentiment: Turnaround plan is gaining traction: Estée Lauder said its Profit Recovery and Growth Plan is performing ahead of expectations. The program targets roughly $1.2 billion in gross cost savings by 2028 through headcount reductions, supply-chain rationalization and other efficiency measures, helping drive operating-margin expansion. Why Estée Lauder Stock Jumped Today
• Neutral Sentiment: Investor positioning: Call-option activity was unusually high, suggesting increased near-term bullish speculation. However, recent institutional ownership changes were mixed, with some major investors adding shares and others reducing positions.
• Negative Sentiment: Valuation risk remains: Analysts note that the rally has left EL trading at an elevated forward valuation—approximately 25 times projected fiscal 2028 earnings—despite an expected mid-single-digit growth profile. This could limit further upside if the recovery slows or cost savings fail to translate into durable earnings growth. Estee Lauder's Self-Help Actions Are Fully Reflected In Valuation

About Estee Lauder Companies

Estée Lauder Companies Inc NYSE: EL is a global leader in prestige beauty that develops, manufactures and markets a broad portfolio of skincare, makeup, fragrance and hair care products. Founded in 1946 by Estée Lauder, the company has grown from a small family business into a multinational consumer-products enterprise headquartered in New York City. Its activities span product research and development, brand and product marketing, manufacturing and global distribution across multiple retail channels.

The company's portfolio includes a mix of legacy and prestige brands that target different consumer segments and price points, with well-known names such as Estée Lauder, Clinique, MAC, La Mer and Jo Malone among others.

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