Estee Lauder price target raised to $87 from $66 at Morgan Stanley

Morgan Stanley analyst Dara Mohsenian raised the firm’s price target on Estee Lauder (EL) to $87 from $66 and keeps an Equal Weight rating on the shares. With Q4 results, Estee Lauder gave a more optimistic view of turnaround progress, with a market share rebound in China, the U.S. and Japan for the second-straight quarter, the analyst tells investors. However, the firm notes that its FY26 and FY27 EPS forecasts move down by 13% and 11%, respectively, post Q4 and it expects consensus to come down as well, but most of the gap is due to a higher tax rate that should come back down over time.