12:05 PM EDT, 05/22/2026 (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:
On Thursday, EL announced it terminated discussions around a potential strategic combination with Puig Brands (PUIG 15 NR). Shares rose 10%, reflecting investor relief over avoided integration risk and balance sheet strain. We share this view. EL can now focus on its 'Beauty Reimagined' turnaround. We raise our PT to $93, applying 31x (from 29x) to our unchanged FY27 EPS of $2.99, supported by reduced deal uncertainty and improved strategic clarity. Our multiple is a discount to EL's 40x five-year average, warranted by turnaround execution risk, and a premium to the 26x S&P 1500 Consumer Discretionary index given EL's brand strength. We maintain our Hold opinion, balancing improved execution visibility against a cautious consumer backdrop. EL recently raised organic growth guidance to 3% (from 1-3%) due to DTC momentum, but we remain watchful of trade-down risk among middle-income consumers toward mass-market alternatives. Near-term, we look for margin progression and China recovery as key catalysts.