DBS analyst Cheria Widjaja has maintained their neutral stance on EL stock, giving a Hold rating on May 5.
Cheria Widjaja has given his Hold rating due to a combination of factors impacting The Estée Lauder Companies. The company’s earnings per share in the third quarter of 2025 fell significantly year-over-year, primarily due to a decrease in sales, reduced operating leverage, and increased investments aimed at consumers. Although there was some gross margin improvement, it was not enough to offset the decline in sales volumes and the rise in consumer-facing investments.
Looking ahead, the sales outlook remains uncertain, particularly in the Asia travel retail sector, which is experiencing a slower recovery than expected. This uncertainty, coupled with challenges in North America such as intense competition and a slowdown in traditional retail channels, is expected to continue impacting sales performance. Despite ongoing efforts to restore profitability through strategic initiatives, including enhancing supply chain efficiencies and leveraging digital capabilities, the uncertain market conditions and potential tariff impacts lead to a cautious stance. Consequently, the Hold rating reflects the need for more clarity on the company’s turnaround and market conditions before considering a more optimistic outlook.
According to TipRanks, Widjaja is a 3-star analyst with an average return of 10.8% and a 100.00% success rate. Widjaja covers the Consumer Defensive sector, focusing on stocks such as Procter & Gamble, Colgate-Palmolive, and Kao.
In another report released on May 5, Berenberg Bank also maintained a Hold rating on the stock with a $61.00 price target.