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Investing.com - JPMorgan has reduced its price target on Estee Lauder (NYSE:EL) to $99.00 from $101.00 while maintaining an Overweight rating on the stock. The beauty giant, currently trading at $86.57 with a market capitalization of $31.2 billion, is currently trading near its InvestingPro Fair Value.
The firm cited ongoing challenges in Estee Lauder’s travel retail and brick-and-mortar operations in Asia, which remain weak despite the return of travelers to the region.
Despite these concerns, JPMorgan expressed confidence in the company’s Profit Recovery and Growth Plan (PRGP) and its new management team, which it believes will help address these issues over time.
The research note highlighted that while there is no clear timeline for recovery, Estee Lauder has shown some positive results recently, including market share gains in its largest markets.
JPMorgan specifically mentioned that the company has secured market share improvements in China, Japan, and the United States during the second half of the fiscal year.
In other recent news, Estee Lauder reported its fourth-quarter earnings for fiscal 2025, revealing a 12.0% decline in sales year-over-year, which was slightly better than the anticipated 12.6% drop. The company’s adjusted earnings per share were $0.09, meeting consensus estimates and within the company’s guidance range. RBC Capital responded to these results by raising its price target for Estee Lauder to $107.00, maintaining an Outperform rating, despite noting that fiscal year 2026 earnings per share guidance might not meet some investors’ high expectations. Canaccord Genuity maintained its Hold rating and set a price target of $85.00, acknowledging the company’s ongoing recovery efforts. Analysts noted that Estee Lauder’s results fell within the expected range, although broader market conditions and future growth prospects remain a concern for investors.
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