01:10 PM EDT, 03/24/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

EL shares are down ~9% in intra-day trading resulting from reports that EL is in discussions to merge with Spain's Puig. We think the potential merger could help EL gain exposure to both the fragrance industry and a younger consumer as EL is traditionally known for skin care/makeup products that target a more mature consumer. Although we do not think that the combined company could out-compete LVMH or L'Oreal, we see it positioning EL favorably vs. COTY as Puig owns its brands vs. COTY's business model of licensing products. We also think the combined EL-Puig company would have more leverage when it comes to negotiations with retailers. With no final decision made and no agreement reached, we believe the market reaction reflects concerns of dilution and cash use amid an already strenuous turnaround strategy in EL's business. We see the merger adding integration risk and complexity to operations, and stressing the balance sheet fairly soon after gaining its footing with the Tom Ford acquisition.