
Estee Lauder (EL) Stock Forecast & Price Target
Estee Lauder (EL) Analyst Ratings
Bulls say
Estée Lauder Cos. demonstrated a significant improvement in its operating margin, which rose by 290 basis points to 14.4% in the second quarter of fiscal 2026, surpassing consensus expectations. The company's strong performance in mainland China, with a margin increase of 680 basis points to 15.9%, along with an impressive 7,230 basis point rise in the Americas to 8.5%, underlines its robust operational efficiency. Additionally, sales growth was recorded at 4% year-over-year on an organic basis, driven by heightened consumer demand and strategic marketing initiatives, particularly within the skin care and makeup categories.
Bears say
Estée Lauder's stock outlook appears negative due to the decline in travel retail revenue, which significantly impacted fiscal year 2025 performance, showing a decrease of 28% year-over-year. Additionally, the company's guidance for normalized funds from operations (FFO) suggests modest growth of only 4% year-over-year, falling short of prior consensus estimates. Lastly, despite a slight improvement in selling, general, and administrative (SG&A) expenses as a percentage of sales, the overall financial performance remains constrained by inventory challenges and lackluster sales growth in key markets.
This aggregate rating is based on analysts' research of Estee Lauder and is not a guaranteed prediction by Public.com or investment advice.
Estee Lauder (EL) Analyst Forecast & Price Prediction
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