TD Cowen analyst Oliver Chen maintained a Hold rating on The Estée Lauder Companies today and set a price target of $100.00.
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Oliver Chen has given his Hold rating due to a combination of factors impacting The Estée Lauder Companies. While the company is on a path to growth, challenges such as higher tariff impacts, elevated expectations, and weaknesses in European markets and travel retail trends have influenced the stock’s performance. Chen acknowledges the company’s efforts to transform and improve, but he remains cautious, looking for sustainable improvements in brand building and product execution that lead to consistent revenue growth.
Additionally, Chen notes that although there are positive changes, the valuation of Estée Lauder remains relatively high compared to peers like LVMH. The company’s organic sales outside of travel retail have shown slight declines, but management anticipates improvement. Key areas of concern include weaker conversion in travel retail, muted consumer sentiment in the US and Europe, and increasing competition in the beauty sector. These factors contribute to the Hold rating as Chen monitors the company’s ability to navigate these challenges effectively.
Chen covers the Consumer Cyclical sector, focusing on stocks such as Ermenegildo Zegna, Tapestry, and Capri Holdings. According to TipRanks, Chen has an average return of 6.2% and a 51.90% success rate on recommended stocks.
In another report released today, Barclays also maintained a Hold rating on the stock with a $84.00 price target.