Critical Insights From Estee Lauder Cos Analyst Ratings: What You Need To Know

9 analysts have expressed a variety of opinions on Estee Lauder Cos EL over the past quarter, offering a diverse set of opinions from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $159.11, a high estimate of $179.00, and a low estimate of $121.00. Marking an increase of 23.21%, the current average surpasses the previous average price target of $129.14.

Deciphering Analyst Ratings: An In-Depth Analysis

The standing of Estee Lauder Cos among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below 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 insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Estee Lauder Cos compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Estee Lauder Cos's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Estee Lauder Cos's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Estee Lauder Cos analyst ratings.

Discovering Estee Lauder Cos: A Closer Look

Estee Lauder is a leader in the global prestige beauty market, participating across skin care (52% of 2023 sales), makeup (28%), fragrance (16%), 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 28% of revenue from the Americas, 39% from Europe, the Middle East and Africa (including travel retail), and 33% 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.

Estee Lauder Cos: Financial Performance Dissected

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Decline in Revenue: Over the 3 months period, Estee Lauder Cos faced challenges, resulting in a decline of approximately -7.38% in revenue growth as of 31 December, 2023. This signifies a reduction in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Staples sector.

Net Margin: Estee Lauder Cos's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 7.31% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Estee Lauder Cos's ROE excels beyond industry benchmarks, reaching 5.66%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Estee Lauder Cos's ROA stands out, surpassing industry averages. With an impressive ROA of 1.36%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 1.79, caution is advised due to increased financial risk.

Analyst Ratings: What Are They?

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.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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