09:57 AM EDT, 06/23/2025 (MT Newswires) -- Estee Lauder ( EL ) seems to be diversifying "well beyond" China for future growth, supported by projects to boost innovation and move decision-making "closer to where business gets done," Deutsche Bank said in a report Monday.

Deutsche Bank analysts said they believe the beauty company's "investment requirements have been largely fulfilled," particularly tied to supply-chain improvements and forecasting, "so that "go-forward top-line growth can be better leveraged to the benefit of margin and profit recovery."

The analysts also said they believe Estee Lauder ( EL ) will end 2025 with its trade inventories back in balance and will keep them in balance starting next year, which will lead to reported year-on-year growth that will likely exceed annualized rates of consumption.

There are also "near-term signs" that global beauty demand may have bottomed and is improving, particularly in the US and China, with the company's "market share trends similarly showing positive signs of inflection" year to date, Deutsche Bank analysts said.

Deutsche upgraded Estee Lauder ( EL ) to buy from hold. It also lifted its price target to $95 from $71, citing a "more optimistic medium-term outlook."

Price: 77.48, Change: +2.29, Percent Change: +3.05