Hold Rating for Estée Lauder Amid Uncertainty and Trade Tensions

Canaccord Genuity analyst Susan Anderson maintained a Hold rating on The Estée Lauder Companies (EL – Research Report) today and set a price target of $62.00.

Susan Anderson’s rating is based on several factors affecting The Estée Lauder Companies. Primarily, there is increased uncertainty and limited visibility regarding the company’s recovery timeline, which has led to a reduction in the price target from $70 to $62. The company’s valuation has been pressured due to a lower valuation multiple, now estimated at 27 times the fiscal year 2 estimated EPS compared to the previous 30 times. Additionally, the beauty demand in the US and Europe is normalizing, and there is ongoing pressure in Asia, particularly in the travel retail channel.
Another significant factor influencing the Hold rating is the impact of tariffs and the escalating trade tensions between the US and China, which are expected to further delay recovery in China and the Asia travel retail sector. While management has initiated steps for a long-term recovery through their “Beauty Reimagined” strategy, it is anticipated that these efforts will take time to show results. The company’s performance in the upcoming quarter is expected to align with guidance, but uncertainties around tariffs and consumer sentiment remain key concerns.

Anderson covers the Consumer Cyclical sector, focusing on stocks such as e.l.f. Beauty, The Estée Lauder Companies, and Helen Of Troy. According to TipRanks, Anderson has an average return of 14.3% and a 40.45% success rate on recommended stocks.

In another report released on April 24, Telsey Advisory also maintained a Hold rating on the stock with a $76.00 price target.