Analyst Ashley Wallace from Bank of America Securities reiterated a Buy rating on The Estée Lauder Companies and decreased the price target to $120.00 from $130.00.
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Ashley Wallace has given his Buy rating due to a combination of factors, including the sizable earnings uplift he expects from a potential merger with Puig and the company’s improving fundamentals. He notes that even a fully stock-funded transaction could significantly boost Estée Lauder’s earnings per share, while upcoming results from both companies may clarify the deal’s structure and economics, supporting a higher long-term valuation.
He also points to signs that the operational turnaround is progressing, with modest organic sales growth driven by strength in Mainland China and key brand initiatives, alongside stable gross margins and disciplined cost control. In addition, Estée Lauder’s “one ELC” strategy, including new global partnerships and a large cost-savings program, is expected to enhance efficiency and free up funds for brand-building investments, underlining confidence in future profit growth despite a slightly reduced price objective.
According to TipRanks, Wallace is ranked #6157 out of 12068 analysts.
In another report released on April 9, RBC Capital also maintained a Buy rating on the stock with a $111.00 price target.