Canaccord Genuity raises Estee Lauder stock price target to $85 on FY27 profit recovery hopes

Published 18/08/2025, 12:30
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Investing.com - Canaccord Genuity raised its price target on Estee Lauder (NYSE:EL) to $85.00 from $62.00 on Monday, while maintaining a Hold rating on the cosmetics giant ahead of its earnings report. The stock, currently trading at $90.97, has seen analyst targets ranging from $56.20 to $120, with seven analysts recently revising their earnings estimates upward according to InvestingPro data.

The firm cited expectations for a profit recovery in fiscal year 2027, though it emphasized that Estee Lauder’s earnings "remain depressed with little visibility around a more structural recovery."

Canaccord Genuity highlighted persistent structural challenges facing the company, including weakness in the Asia travel retail channel and increased competition in the prestige beauty segment.

The research firm noted that recent tariff escalations could create additional headwinds, including a 15% tariff on European Union imports and 39% on Swiss imports into the United States.

For Estee Lauder’s fourth quarter ending in June, Canaccord estimates sales will decline 12.6% year-over-year, slightly better than the company’s implied guidance of a 15% to 11% drop, with adjusted earnings per share of $0.07 compared to the Street consensus of $0.09. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading near its fair value, with earnings results due in just two days.

In other recent news, Estee Lauder Companies Inc. is preparing for its fiscal fourth-quarter 2025 earnings report, with UBS maintaining a Neutral rating and a price target of $93.00. Meanwhile, Citi has adjusted its price target for Estee Lauder to $95.00 from $60.00, maintaining a Neutral rating but projecting a challenging quarter with a 12.5% decline in organic sales growth. BofA Securities has resumed coverage with a Buy rating, setting a $110.00 price target, indicating potential recovery for the company.

Additionally, Estee Lauder has appointed Aude Gandon as Chief Digital & Marketing Officer, effective August 1, 2025, to lead its digital and marketing transformation. The company also announced upcoming changes to its board of directors, with Lynn Forester de Rothschild deciding not to stand for re-election at the 2025 Annual Meeting of Stockholders. Estee Lauder emphasized that her decision was not due to disagreements with the company. These developments reflect Estee Lauder’s strategic adjustments and ongoing management changes.

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