Estée Lauder pops as the beauty giant gets an upgrade
Analysts say the stock could get a glow-up as beauty demand bottoms out and Estée’s supply chain expands.
Estée Lauder shares jumped after Deutsche Bank upgraded the stock to “buy” from “hold” and raised its price target to $95 from $71.
In a new note, analysts said the beauty conglomerate is finally moving beyond its heavy reliance on China and travel retail, shifting focus toward global innovation and more localized decision-making. Back in 2021, Asia made up over a third of Estée’s total annual revenue.
With much of its recent supply chain investment now complete, Deutsche Bank said the company has more room to leverage future growth and improve margins. Analysts also wrote that the global beauty slowdown may have bottomed out, especially in China and the US.
Inventory issues are also expected to stabilize by the end of FY25, setting the stage for a cleaner rebound next year. The note comes just a week after longtime Estée Lauder Chairman Emeritus Leonard A. Lauder passed away following more than 60 years with the company.
Estée Lauder shares are now positive on the year, up about 1%.
