Deutsche Bank upgrades Estée Lauder to “buy” on growth, margin recovery

Published 23/06/2025, 12:18
© Reuters

Investing.com -- Deutsche Bank (ETR:DBKGn) has upgraded Estée Lauder to “buy” from “hold,” raising its price target to $95 from $71. 

According to Deutsche Bank analyst Steve Powers, Estée Lauder’s strategy shows increasing evidence of diversifying beyond China and related travel retail. 

Powers noted that the company is accelerating innovation across its brands and price tiers while shifting decision-making geographically closer to where business activity takes place.

Powers said Estée Lauder’s significant investment phase, particularly in supply-chain enhancements and forecasting improvements, appears largely complete. 

As a result, future top-line growth is positioned to have a stronger impact on margin and profit recovery. 

The brokerage emphasized that additional commercial and capability investments can now be funded through cost savings from previously overrun areas.

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