09:00 AM EDT, 07/19/2024 (MT Newswires) -- Estee Lauder's ( EL ) near-term prospects are uncertain as the company faces slow demand in China's luxury beauty market, analysts at Oppenheimer said Friday in a note.

Estee Lauder ( EL ) shares "remain on our radar, but we would stay sidelined at current levels," Oppenheimer said. The luxury beauty scene in key market China is currently muted, and similar brands are facing currency headwinds.

The company's shares are down 31% year-to-date, lower than the declines of 10% and 18% from peers L'Oreal and ULTA, the investment bank said.

On the upside, Oppenheimer sees favorable prospects for Estee Lauder ( EL ) in the longer term. There is a potential for strong profit recovery by fiscal year 2026 given management's cost savings plans, the analysts said, and the company's shares "still appear under-owned to us."

Price: 97.19, Change: +0.29, Percent Change: +0.30