Estee Lauder downgraded to Hold at Stifel following ‘disappointing’ Q1

Stifel downgraded Estee Lauder (EL) to Hold from Buy with a $125 price target following “disappointing” fiscal Q1 results and the withdrawal of FY25 guidance. Fiscal Q1 results continue a trend of share loss of a generally weak global prestige beauty category and by segment results were “underwhelming” as Lauder reported declines across all segments, indicating share loss is widespread, the analyst tells investors. The firm, which notes that the company also reduced its quarterly dividend to 35c from 55c, thinks the results and lack of visibility suggest “considerable work and time needed for incoming management to improve performance” and it anticipates shares will underperform following the report.