Analyst Bonnie Herzog of Goldman Sachs maintained a Hold rating on The Estée Lauder Companies (EL – Research Report), retaining the price target of $70.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Bonnie Herzog has given her Hold rating due to a combination of factors affecting The Estée Lauder Companies. One of the primary reasons is the uncertainty surrounding the company’s true earnings potential, which has left investors in a state of wait-and-see, particularly due to unclear market recovery prospects in key areas like China and travel retail. This uncertainty is compounded by potential execution risks associated with the company’s new strategic direction, ‘Beauty Reimagined.’
Furthermore, despite management’s efforts to diversify growth channels and reduce concentration risk, there is ongoing skepticism about whether the company’s business has truly hit its lowest point and if recovery is imminent. Investors remain cautious given the company’s current financial performance, with top-line pressures and operating margins in the single digits for the fiscal year 2025, necessitating substantial reinvestments. This cautious outlook contributes to the decision to maintain a Hold rating at this time.
Herzog covers the Consumer Defensive sector, focusing on stocks such as Procter & Gamble, Brown-Forman B, and Altria Group. According to TipRanks, Herzog has an average return of 3.8% and a 54.61% success rate on recommended stocks.
In another report released on February 6, DBS also maintained a Hold rating on the stock with a $73.00 price target.