TD Cowen analyst Oliver Chen has maintained their neutral stance on EL stock, giving a Hold rating yesterday.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Oliver Chen has given his Hold rating due to a combination of factors that reflect both optimism and caution regarding The Estée Lauder Companies’ future performance. The company’s recent growth in China and travel retail, along with gains in the U.S. market share, are positive indicators. Additionally, innovations in skincare and strategic distribution partnerships with platforms like Sephora and Amazon highlight potential for continued success.
However, Chen remains cautious due to challenges such as tougher comparisons in the latter half of the year for travel retail and China, as well as macroeconomic pressures in the Americas. The current price-to-earnings ratio is also higher than the three-year average, suggesting that the stock may be fairly valued at present. While there are encouraging signs of recovery and digital expansion, Chen prefers to wait for more consistent margin improvements and stabilization in key markets before considering a more favorable rating.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $90.00 price target.