Fiserv earnings missed by $0.61, revenue fell short of estimates
Investing.com - Canaccord Genuity raised its price target on Estee Lauder (NYSE:EL) to $100.00 from $85.00 on Monday, while maintaining a Hold rating on the cosmetics giant ahead of its upcoming earnings report. The stock, currently trading at $102.16, has shown impressive momentum with a 71% gain over the past six months, according to InvestingPro data.
The price target increase reflects improving trends among Chinese consumers, according to Canaccord’s research note, which cited positive indicators from luxury goods maker LVMH and beauty company L’Oreal.
Despite these improvements, Canaccord noted that the travel retail channel, while showing signs of recovery, remains in negative territory, creating headwinds for Estee Lauder’s business.
The research firm estimates Estee Lauder’s first-quarter fiscal 2026 sales will decline 0.6%, compared to the Street consensus of 0.5% growth, following four consecutive quarters of sales declines.
Canaccord cited normalizing beauty demand in key markets including the United States and Western Europe amid "choppy" macroeconomic conditions as factors creating a challenging environment for Estee Lauder’s turnaround efforts in the near term. For deeper insights into Estee Lauder’s valuation and financial health metrics, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Estée Lauder has seen notable developments across various aspects of its business. Goldman Sachs has upgraded Estée Lauder’s stock from Neutral to Buy, increasing the price target to $115.00, driven by optimism about the company’s business trajectory in China. This comes as mainland sales in China have returned to mid-single-digit growth, indicating stabilization in the region. Meanwhile, JPMorgan has adjusted its price target for Estée Lauder to $99.00 from $101.00, maintaining an Overweight rating, due to ongoing challenges in travel retail and brick-and-mortar operations in Asia.
Additionally, Estée Lauder has appointed Nia Long as its first North America brand ambassador, who will represent the company’s skincare and makeup products across various media platforms. The company has also announced a reorganization of its geographic reporting structure for fiscal 2026, creating four distinct regions including Mainland China as a separate entity. Furthermore, René Lammers has been appointed as the new Chief Research & Innovation Officer, where he will lead the company’s global research and innovation initiatives. These recent developments reflect Estée Lauder’s strategic adjustments and leadership changes aimed at navigating current market conditions.
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