Cosmetics giant Estée Lauder Companies (NYSE:EL) is likely to announce an acquisition deal with Tom Ford soon. The deal value is expected to be about $2.8 billion, which will be Estée Lauder’s largest-ever acquisition. The potential deal was first reported by The Wall Street Journal (WSJ) in August.
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In its latest update, WSJ, citing people familiar with the matter, stated that the company might announce a deal as early as today.
Notably, Estée Lauder is interested in getting its hands on the ultra-prestige beauty business of Tom Ford. Also, the deal will expand the company’s presence in the apparel business due to Tom Ford’s offerings of men’s as well as women’s clothing. Further, the report stated that Estée Lauder seeks to make new licensing agreements for Tom Ford’s fashion and eyewear.
Is Estée Lauder Stock a Good Buy?
Wall Street is cautiously optimistic about Estée Lauder stock, with a Moderate Buy consensus rating based on 14 Buys and five Holds. The average EL stock price target of $249.11 implies 12.89% upside potential from the current levels.
