Estee Lauder

Estée Lauder is shifting its strategy toward pricing to boost the image of its luxury beauty brands, CEO Fabrizio Freda says at UBS Global Consumer and Retail Conference. The executive acknowledged that “there’s been too much discounting” due to the volatility seen during Covid-19, and said the company has “all the plans to reabsorb these discounts correctly without impacting volume.” The company is also maximizing the capacity utilization of its factories. These measures are aimed at boosting Estée Lauder’s gross profit, Freda adds. Shares fall 3.3% to $152.76.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: Shares are ~3% lower in intraday trading on reports of Valisure’s, an independent U.S. laboratory, findings during testing of acne treatment products containing Benzoyl Peroxide (BPO). Valisure found BPO acne products are fundamentally unstable and can generate unacceptably high levels of Benzene, a known carcinogenic, when stored or exposed to higher temperatures by consumer handling. Benzene was found to potentially escape into the surrounding air at approximately 1,270 times the EPA’s calculated threshold for increased cancer risk, when measured in a compact car at 70 degrees Celsius. Clinique, one of EL’s leading brands, was highlighted as having BPO products. Visiting Clinique’s website we found 1/10 acne products listed BPO as an ingredient. This BPO acne product is not listed as a top-seller for Clinique across various e-commerce

Goldman Sachs analyst Jason English downgrades Estee Lauder Cos (NYSE:EL) from Buy to Neutral and maintains the price target from $145 to $145.

Estee Lauder (NYSE:EL) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/13/2024 25.68% DA Davidson → $179 Reiterates Buy → Buy 02/06/2024 17.25% JP Morgan $150 → $167 Maintains Overweight 02/06/2024 -8.02% RBC Capital $115 → $131 Maintains Sector Perform 02/06/2024 22.87% Wells Fargo $155 → $175 Maintains Overweight 02/06/2024 22.87% Raymond James $150 → $175 Maintains Strong Buy 02/06/2024 8.83% Telsey Advisory Group $115 → $155 Maintains Market Perform 01/18/2024 5.32% JP Morgan $118 → $150 Maintains Overweight 01/16/2024 -15.04% Barclays $101 → $121 Maintains Equal-Weight 11/29/2023 14.45% DA Davidson $146 → $163 Maintains Buy 11/28/2023 26.38% HSBC → $180 Initiates Coverage On → Buy 11/08/2023 -15.75% TD Cowen → $120 Downgrades Outperform → Market Perform 11/03/2023 -17.15% Berenberg $224 → $118 Downgrades Buy → Hold 11/02/2023 2.51% DA Davidson $185 → $146 Maintains Buy 11/02/2023 -17.15% JP Morgan $173 →

DA Davidson analyst Linda Bolton Weiser reiterates Estee Lauder Cos (NYSE:EL) with a Buy and maintains $179 price target.

Estee Lauder is raising funds as the deadline to fully acquire the Canadian-beauty brand Deciem, owner of The Ordinary brand, approaches. In February 2021, the beauty giant said it agreed to purchase the remaining 24% stake after a three-year period, and it is now issuing $650 million of senior notes to acquire the remaining interest. The Ordinary is boosting Estee Lauder’s results thanks to its distribution strategy and appeal to a younger customer base. It is expected to become Estee Lauder’s seventh $1 billion plus brand in the next few years. The total acquisition is valued at about $1.7 billion. The offering is expected to close on or about Feb. 14. Shares drop 2.9% to $141.61.

Estee Lauder (EL) is positioned to be a “more competitive enterprise” with its restructuring plan, RBC Capital Markets said in a note to clients Tuesday. Estee Lauder on Monday announced a two-year restructuring program to generate $350 million to $500 million in annual gross benefits as part of its profit recovery plan. The restructuring includes a 3% to 5% reduction of its workforce globally. “We see [the restructuring plan] as a constructive step in the right direction, but remain on the sidelines until we see evidence that [Estee Lauder] is executing on its plan,” said RBC analysts. The investment firm raised its price target on Estee Lauder to $131 from $115 given increased profitability estimates tied to the profit recovery plan, and kept its sector perform rating. The company said Monday it forecasts incremental operating profit of $1.1 billion to $1.4 billion, an increase from the prior $800 million to

Estee Lauder’s restructuring efforts will help the beauty giant meet or even exceed its new guidance, which remains conservative, JPMorgan analysts say in a research note. There is evidence that demand trends have worsened sequentially in Mainland China, but consumption has been outpacing shipments as retailers take their inventories down, analysts add. JPMorgan raises its target price to $167 from $150 previously to reflect the new guidance, innovation prospects, details on the most recent trends across regions, and raised profit recovery plan. Shares drop 2.4% to $146.76.

JPMorgan analyst Andrea Teixeira maintains Estee Lauder Cos (NYSE:EL) with a Overweight and raises the price target from $150 to $167.

Estee Lauder’s expanded recovery plan could be the start of a new beginning for the cosmetics company, Wells Fargo analysts say in a research note. “Estee Lauder isn’t perfect, but with the potential for a sales inflection in the 2H, into margin recovery FY25/26, it may not be long before it sees prospects for upside to EPS,” say the analysts, which could bring the stock back above $200. But Wells Fargo warns, if Estee Lauder doesn’t see a recovery in Asia Travel Retail/China, and trends worsen outside of these geographies, earnings could stagnate. Wells Fargo raises its target price to $175 from $155 previously. Shares drop 2.9% to $145.97.

Estee Lauder (NYSE:EL) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 02/06/2024 3.33% Telsey Advisory Group $115 → $155 Maintains Market Perform 01/18/2024 -0.01% JP Morgan $118 → $150 Maintains Overweight 01/16/2024 -19.34% Barclays $101 → $121 Maintains Equal-Weight 11/29/2023 8.66% DA Davidson $146 → $163 Maintains Buy 11/28/2023 19.99% HSBC → $180 Initiates Coverage On → Buy 11/08/2023 -20.01% TD Cowen → $120 Downgrades Outperform → Market Perform 11/03/2023 -21.34% Berenberg $224 → $118 Downgrades Buy → Hold 11/02/2023 -2.67% DA Davidson $185 → $146 Maintains Buy 11/02/2023 -21.34% JP Morgan $173 → $118 Maintains Overweight 11/02/2023 -10.67% Morgan Stanley $200 → $134 Maintains Overweight 11/02/2023 -6.01% Goldman Sachs $185 → $141 Maintains Buy 11/02/2023 -23.34% Telsey Advisory Group $210 → $115 Downgrades Outperform → Market Perform 11/02/2023 -23.34% RBC Capital $195 → $115 Downgrades Outperform → Sector Perform 10/26/2023 39.99%

Morgan Stanley Raises price target on Estee Lauder to $164 From $134, Says Cost-Cutting Provides More Visibility; Keeps Overweight Rating.