Estée Lauder aims for annual mid-single-digit organic sales growth and double-digit adjusted EPS growth through fiscal 2030.
- Barclays lifted its price target to $126 from $108, maintaining an Overweight rating.
- Fourteen of the 30 analysts covering the stock rate it ‘Hold,’ while 15 recommend ‘Buy’ or ‘Strong Buy’ and one has a ‘Sell’ rating, according to Koyfin.
- Margin expansion is expected to be strongest in fiscal 2028 as benefits from the Profit Recovery and Growth Plan take hold.
Estée Lauder (EL) shares rose in premarket trading on Wednesday after a few Wall Street analysts raised their price targets on the stock following the beauty giant’s fiscal first-quarter results. The company also outlined its financial ambitions through fiscal 2030.
Barclays raised its price target to $126 from $108 on Wednesday, while maintaining an ‘Overweight’ rating, according to The Fly. The brokerage cited broad-based growth across regions and product categories, along with the potential for earnings upside from favourable operating leverage.
EL shares traded 2.8% higher in premarket trading at the time of writing.
Fourteen of the 30 analysts covering the stock rate it ‘Hold,’ while 15 recommend ‘Buy’ or ‘Strong Buy’ and one has a ‘Sell’ rating, according to Koyfin. Their 12-month price target ranges from $70 to $129, with an average of $113.43.
Analysts Raise Estée Lauder Price Targets
On Wednesday, RBC Capital raised its price target on Estée Lauder to $126 from $120 and maintained an ‘Outperform’ rating. According to The Fly, the analyst cited outperformance across all regions and major profit-and-loss line items, adding that sales growth was helping the company realize margin and earnings benefits from its Profit Recovery and Growth Plan (PRGP).
BofA raised its price target to $126 from $120 and maintained a ‘Buy’ rating, The Fly reported. The firm raised its adjusted earnings-per-share estimates for fiscal 2027 and fiscal 2028 by 4%-5%, primarily due to higher gross margin, putting its forecasts above the top end of the company’s raised guidance.
Morgan Stanley raised its price target to $118 from $112 while maintaining an ‘Equal Weight’ rating, according to The Fly. The firm said it remained impressed by the turnaround under Estée Lauder’s relatively new management team as investors continued to focus on risks from weaker consumer spending.
Estée Lauder Sets Fiscal 2030 Targets
Separately, Estée Lauder announced its fiscal 2030 ambitions on Wednesday at its Capital Markets Experience event in Shanghai, China. The company aims to deliver sustainable mid-single-digit organic net sales growth annually through fiscal 2030, alongside double-digit adjusted earnings-per-share growth over the same period.
The company also targets an adjusted operating margin of 16.5%-18.5% in fiscal 2030. CEO Stéphane de La Faverie said the company was “moving beyond restoring growth to accelerating sustainable, profitable growth and creating long-term value.”
Estée Lauder expects its adjusted effective tax rate to reach 30% or below by fiscal 2030. It also expects higher earnings, lower restructuring payments and continued working-capital efficiencies to strengthen operating cash flow, alongside capital expenditure optimization to increase free cash flow.
The company expects margin expansion to be greater in fiscal 2028 than in fiscal 2029 and fiscal 2030, reflecting a full-year run rate of benefits from initiatives approved under its Profit Recovery and Growth Plan through fiscal 2027. It also expects continued reductions in non-consumer-facing expenses through everyday efficiencies while maintaining consumer-facing investment to support sales growth.
How Retail Views EL
On Stocktwits, the retail sentiment for EL remained in ‘Extremely Bullish’ territory from ‘Bullish’ a day ago, amid ‘High’ message volumes.
EL shares have dropped 1.7% year-to-date.
Also read: AI Faces A Higher Hurdle, Not An Extinction Event After Democrats’ Midterm Sweep, Says Saxo Strategist
For updates and corrections, email newsroom[at]stocktwits[dot]com.<