Hold Rating on Estée Lauder Amid Declining Financial Performance and Uncertain Sales Outlook

Analyst Cheria Widjaja of DBS maintained a Hold rating on The Estée Lauder Companies (EL – Research Report), reducing the price target to $69.00.

Cheria Widjaja has given her Hold rating due to a combination of factors impacting The Estée Lauder Companies. The company’s recent financial performance has shown a decline, with a net loss per share reported in the second quarter of 2025, primarily due to restructuring charges. Additionally, the company’s adjusted earnings per share fell significantly compared to the previous year, despite some mitigation from gross margin improvements.
Furthermore, the sales outlook remains uncertain, particularly in the Asian travel retail sector, which has been affected by weak consumer sentiment in key markets such as China, Korea, and Hong Kong. The ongoing challenges in these regions, coupled with soft demand in North America, are expected to weigh on the company’s earnings. Despite efforts to implement strategic initiatives aimed at restoring profitability and driving long-term growth, the current market conditions and competitive pressures suggest that the stock may trade within a range until there is more clarity on the company’s recovery trajectory.

Widjaja covers the Consumer Defensive sector, focusing on stocks such as Colgate-Palmolive, Procter & Gamble, and Kao. According to TipRanks, Widjaja has an average return of 10.8% and a 100.00% success rate on recommended stocks.

In another report released yesterday, Goldman Sachs also maintained a Hold rating on the stock with a $67.00 price target.