A Closer Look at 13 Analyst Recommendations For Estee Lauder Cos

In the latest quarter, 13 analysts provided ratings for Estee Lauder Cos EL, showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $143.15, along with a high estimate of $210.00 and a low estimate of $115.00. Observing a downward trend, the current average is 21.09% lower than the prior average price target of $181.40.

Interpreting Analyst Ratings: A Closer Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Estee Lauder Cos. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Estee Lauder Cos. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Estee Lauder Cos compared to the broader market.
• Price Targets: Understanding forecasts, analysts offer estimates for Estee Lauder Cos's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

To gain a panoramic view of Estee Lauder Cos's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Estee Lauder Cos analyst ratings.

All You Need to Know About Estee Lauder Cos

Estee Lauder is a leader in the global prestige beauty market, participating across skin care (56% of 2022 sales), makeup (26%), fragrance (14%), and hair care (4%) categories, with top-selling brands such as Estee Lauder, Clinique, M.A.C, La Mer, Jo Malone London, Aveda, Bobbi Brown, and Origins. The firm operates in more than 150 countries, generating 26% of revenue from the Americas, 43% from Europe, the Middle East and Africa (including travel retail), and 31% from Asia Pacific. Estee Lauder sells its products through department stores, travel retail, specialty multibrand beauty stores, brand-dedicated freestanding stores, e-commerce, salons/spas, and perfumeries.

A Deep Dive into Estee Lauder Cos's Financials

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Negative Revenue Trend: Examining Estee Lauder Cos's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -10.48% in revenue growth, reflecting a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Staples sector.

Net Margin: Estee Lauder Cos's net margin excels beyond industry benchmarks, reaching 0.88%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 0.57%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Estee Lauder Cos's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.13%, the company showcases efficient use of assets and strong financial health.

Debt Management: Estee Lauder Cos's debt-to-equity ratio surpasses industry norms, standing at 1.9. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

What Are Analyst Ratings?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.