Research Alert: CFRA Moves To Hold On Shares Of The Estee Lauder Companies

01:20 AM EDT, 04/14/2025 (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:

Our unchanged 12-month target price of $60 is 32x our FY 26 (Jun.) EPS view of $1.89, a discount to the historical P/E of 34.2x, justified by EL's new leadership and newly announced "Beauty Reimagined" strategy balanced amid macroeconomic uncertain. Our EPS views for FY 25 and FY 26 EPS remain unchanged. We lift our rating to Hold following the 20% share price decline, which has brought the stock to a more reasonable valuation of 29x forward earnings vs. its historical five-year average of 40x. Despite weakening global consumer sentiment, EL benefits from its focus on affluent consumers who prioritize beauty regimens regardless of economic conditions, and its manufacturing facilities positioned close to points of sale provide some insulation from potential tariff impacts. We are encouraged by the new "Beauty Reimagined" strategy and expanded restructuring plan targeting $800M to $1B in annual savings, which should help stabilize margins and top-line performance as benefits materialize in FY 26-FY 27.

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