Estee Lauder (NYSE:EL) shares gained over 6% yesterday after Bank of America Securities analyst Bryan Spillane upgraded the stock’s rating to Buy from Hold and raised the price target to $170 (10.3% upside) from $160. The positive outlook on EL stock is driven by Spillane’s belief in the company’s strong growth potential.
EL is a multinational beauty and skincare company renowned for its premium cosmetics, fragrances, and skincare products.
Bullish Analyst Opinion
Spillane expects Estee Lauder’s renewed focus on developing new products and efforts to reduce reliance on sales in China and the travel market to act as catalysts for future growth.
Citing the company’s enhanced marketing strategies and commitment to new product development, the analyst revised Estee Lauder’s FY26 earnings per share estimate upwards to $5.85 from $5.50.
Interestingly, the analyst’s view aligns with Estee Lauder’s recent announcement that it will start selling its Clinique brand on Amazon.com (AMZN)’s Premium Beauty store in the U.S. This marks the first time Estee Lauder products will be available on the e-commerce giant’s platform.
Is EL a Good Stock?
On TipRanks, Estee Lauder has a Moderate Buy consensus rating based on seven Buys and 14 Holds. The average price target on EL stock of $154.94 indicates that shares are fully valued at current levels. EL stock has declined nearly 36% over the past year.
