Estée Lauder Stock Forecast: Deutsche Bank Turns Bullish, Sees 20% Upside

Business Insider

5 hours ago

Estée Lauder (EL) shares soared on Monday after Deutsche Bank's four-star-rated analyst Stephen Powers upgraded his rating from Hold to Buy. Powers also raised his price target to $95 from $71, predicting an upside of 20.5% in EL stock from current levels. The bullish call puts a spotlight back on the beauty giant, which has been working to regain investor confidence after a prolonged slump.
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Estée Lauder stock jumped nearly 5% on Monday, making it one of the top gainers in the S&P 500. However, the stock remains down more than 30% over the past 12 months.
Here's Why Deutsche Bank Is Bullish on EL Stock
In a recent report, Deutsche Bank highlighted that Estée Lauder had struggled to stay ahead of industry trends, largely due to an over-reliance on Chinese consumers and a lack of focus on other key markets. However, the company is now diversifying its strategy, emphasizing global innovation and more localized decision-making.
With much of its supply chain investment now complete, Deutsche Bank believes the company has more flexibility to drive growth and improve margins. The firm also sees signs that the global beauty market may have bottomed out, especially in China and the U.S.
Meanwhile, analyst Powers noted that Estée Lauder's growth has lagged partly due to prior inventory corrections. Still, he believes the company is now better positioned to keep pace with, or even outpace, overall market growth.
Is Estée Lauder a Good Share to Buy?
EL stock based on four Buys and 16 Holds assigned in the past three months. The average Estée Lauder stock price target of $68.0 per share implies a 13.74% downside.