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Research Alert: CFRA Lowers Opinion To Sell From Hold On The Estee Lauder Companies Inc.
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Research Alert: CFRA Lowers Opinion To Sell From Hold On The Estee Lauder Companies Inc.
Jul 3, 2025 11:23 AM

01:50 PM EDT, 07/03/2025 (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:

We raise our 12-month target price of $76 from $60, on 35x our FY 26 (Jun.) EPS view of $2.18, a discount to the five-year mean P/E of 40x. We think this multiple better reflects the potential of EL's portfolio but is still ahead of its 10-year P/E of 34x, reflecting productivity initiatives. We revise our FY 26 EPS view from $2.15 and FY 25's to $1.36 from $1.35. We favorably view EL's initiatives across productivity, channel realignment, and workforce optimization. The investment thesis centers on operational leverage from EL's digital pivot, which should provide tailwinds to productivity initiatives. However, we maintain a cautious stance, as performance expectations may outpace realities, with shares currently trading at approximately a 60% premium to industry peers in an environment characterized by value-conscious consumers and intensifying competition. While we acknowledge the merit of EL's strategic repositioning, we are bearish on its portfolio gaining necessary traction to deliver investor expectations.

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