Citigroup Forecasts Strong Price Appreciation for Estee Lauder Companies (NYSE:EL) Stock

Key Points

• Citigroup raised Estée Lauder’s price target to $115 from $110 and maintained a “buy” rating, implying about 18% upside from the reported $97.35 share price. However, the broader analyst consensus remains “Hold,” with an average target of $103.05.
• Estée Lauder exceeded quarterly expectations, reporting $3.64 billion in revenue, up 6.3% year over year, and EPS of $0.39 versus the $0.32 consensus estimate. Growth was supported by skincare, fragrance, China and broader geographic momentum.
• Management’s turnaround plan is gaining traction, with fiscal 2027 organic sales growth forecast at 3%–5% and adjusted operating margins expected at 12.7%–13.5%; cost initiatives could generate up to $1.2 billion in gross benefits by 2028.

Estee Lauder Companies (NYSE:EL - Get Free Report) had its target price upped by equities research analysts at Citigroup from $110.00 to $115.00 in a report released on Thursday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Citigroup's target price would suggest a potential upside of 18.13% from the stock's current price.

A number of other equities research analysts have also recently issued reports on EL. Morgan Stanley boosted their target price on shares of Estee Lauder Companies from $90.00 to $102.00 and gave the company an "equal weight" rating in a report on Thursday. Wells Fargo & Company boosted their price objective on Estee Lauder Companies from $85.00 to $104.00 and gave the company an "equal weight" rating in a research note on Thursday. TD Cowen increased their price objective on Estee Lauder Companies from $90.00 to $100.00 and gave the stock a "hold" rating in a report on Thursday. UBS Group raised their price objective on shares of Estee Lauder Companies from $86.00 to $106.00 and gave the company a "neutral" rating in a research report on Thursday. Finally, Canaccord Genuity Group boosted their price objective on shares of Estee Lauder Companies from $80.00 to $85.00 and gave the company a "hold" rating in a research note on Monday, May 4th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $103.05.

Estee Lauder Companies Stock Performance

Shares of EL traded down $0.66 during trading hours on Thursday, hitting $97.35. The company's stock had a trading volume of 3,075,183 shares, compared to its average volume of 3,946,599. The company has a market cap of $35.22 billion, a price-to-earnings ratio of -139.07, a PEG ratio of 0.66 and a beta of 1.25. The company has a debt-to-equity ratio of 1.71, a current ratio of 1.27 and a quick ratio of 0.94. The business has a 50 day simple moving average of $84.40 and a two-hundred day simple moving average of $86.67. Estee Lauder Companies has a 52-week low of $66.22 and a 52-week high of $121.64.

Estee Lauder Companies (NYSE:EL - Get Free Report) last announced its quarterly earnings results on Wednesday, August 19th. The company reported $0.39 EPS for the quarter, beating 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 negative net margin of 1.67% and a positive return on equity of 20.66%. Estee Lauder Companies's revenue was up 6.3% compared to the same quarter last year. During the same period in the prior year, the company posted $0.09 EPS. 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 earnings per share for the current fiscal year.

Institutional Trading of Estee Lauder Companies

A number of hedge funds have recently bought and sold shares of the company. REAP Financial Group LLC bought a new stake in shares of Estee Lauder Companies in the 4th quarter worth approximately $27,000. Investors Towarzystwo Funduszy Inwestycyjnych Spolka Akcyjna bought a new position in shares of Estee Lauder Companies in the fourth quarter worth approximately $27,000. N.E.W. Advisory Services LLC increased its position in shares of Estee Lauder Companies by 39.1% in the fourth quarter. N.E.W. Advisory Services LLC now owns 324 shares of the company's stock valued at $34,000 after acquiring an additional 91 shares during the period. DV Equities LLC purchased a new position in Estee Lauder Companies during the 4th quarter valued at about $36,000. Finally, Trust Co. of Vermont bought a new position in shares of Estee Lauder Companies during the second quarter valued at approximately $28,000. 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 Q4 revenue rose 6% year over year to approximately $3.64 billion, ahead of the $3.55 billion consensus estimate, while adjusted EPS of $0.39 exceeded expectations of $0.32 and increased substantially from $0.09 a year earlier. Growth was supported by Skin Care, Fragrance, China and broader geographic momentum. Estee Lauder Q4 Earnings Beat Estimates, Sales Up 6% Y/Y
• Positive Sentiment: Management affirmed fiscal 2027 organic sales growth of 3% to 5% and raised its adjusted operating-margin outlook to 12.7%–13.5%, signaling that the turnaround, cost controls and margin-recovery plan are gaining traction. The plan is expected to generate up to $1.2 billion in gross benefits by 2028, alongside supply-chain changes and significant workforce reductions. EL Q4 Earnings Call Signals Higher Margins and Broader Growth
• Positive Sentiment: Several analysts raised their price targets following the report: Piper Sandler increased its target to $115 and maintained an overweight rating, while UBS, Wells Fargo, TD Cowen and B. Riley also lifted targets. The revisions reinforce improving sentiment around Estée Lauder’s recovery. Estée Lauder Analysts Boost Their Forecasts After Better-Than-Expected Q2 Results
• Neutral Sentiment: Estée Lauder declared a quarterly dividend of $0.35 per share, implying an annualized yield of roughly 1.4%. The dividend supports shareholder returns but is unlikely to materially change the earnings-driven investment outlook.
• Negative Sentiment: After the rally, some investors view the valuation as demanding—approximately 25 times projected fiscal 2028 earnings for a company targeting mid-single-digit growth. UBS, Wells Fargo, TD Cowen and B. Riley retained neutral, equal-weight or hold ratings, limiting the potential for further upside.

Estee Lauder Companies Company Profile

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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