03:07 PM EST, 01/27/2025 (MT Newswires) -- Estee Lauder ( EL ) investors are taking a "wait-and-see approach" as visibility into the company's near-term fundamentals remains limited, UBS said in a note emailed Monday.

It's still uncertain how the new management at the company will approach both the near-term outlook, as well as a longer-term earnings recovery plan, according to the note.

UBS said that the risk to reward "feels somewhat balanced" heading into fiscal Q2 results, particularly considering that if investors walked away from the report with conviction that the worst was in the rearview mirror, it would "drive greater interest in the stock."

The company is due to report its earnings on Tuesday next week.

The firm said it expects fiscal Q2 earnings to clock in at $0.31 per share, a penny below the consensus estimate but above the midpoint of the company's guidance of $0.20 to $0.35 per share.

UBS maintained its neutral rating and a price target of $80 on the stock.

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