In a report released yesterday, Oliver Chen from TD Cowen maintained a Hold rating on The Estée Lauder Companies (EL – Research Report), with a price target of $62.00.
Oliver Chen has given his Hold rating due to a combination of factors affecting The Estée Lauder Companies. Despite the company achieving a better-than-expected EPS in the third quarter of 2025, there are concerns about its ability to sustain top-line growth in the fiscal year 2026. The company’s operating margins are projected to remain significantly lower than their historical average, and its valuation appears relatively high.
Additionally, Chen points out ongoing debates regarding the company’s performance in Asia Travel Retail and whether recent market share gains indicate a fundamentally stronger brand or are merely the result of favorable comparisons. There are also concerns about the brand’s relevance in China, as indicated by proprietary surveys. While there is optimism about the company’s Profit Recovery & Growth Plan, which aims to improve margins, there is caution about the potential unplanned consequences of organizational changes. The balance between central and local decision-making is seen as crucial for enhancing speed and accountability, and the company’s iconic brand equity is acknowledged.
In another report released on May 2, Telsey Advisory also maintained a Hold rating on the stock with a $66.00 price target.