Peeling Back The Layers: Exploring Estee Lauder Cos Through Analyst Insights

In the preceding three months, 14 analysts have released ratings for Estee Lauder Cos EL, presenting a wide array of perspectives from bullish to bearish.

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

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $168.43, a high estimate of $191.00, and a low estimate of $131.00. Witnessing a positive shift, the current average has risen by 9.85% from the previous average price target of $153.33.

Breaking Down Analyst Ratings: A Detailed Examination

The analysis of recent analyst actions sheds light on the perception of Estee Lauder Cos by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Estee Lauder Cos. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Estee Lauder Cos compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Estee Lauder Cos's stock. This examination reveals shifts in analysts' expectations over time.

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.

About Estee Lauder Cos

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.

Unraveling the Financial Story of Estee Lauder Cos

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Challenges: Estee Lauder Cos's revenue growth over 3 months faced difficulties. As of 31 December, 2023, the company experienced a decline of approximately -7.38%. This indicates a decrease in 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 is impressive, surpassing industry averages. With a net margin of 7.31%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 5.66%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Estee Lauder Cos's ROA excels beyond industry benchmarks, reaching 1.36%. This signifies efficient management of assets and strong financial health.

Debt Management: Estee Lauder Cos's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.79, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Analyst Ratings: Simplified

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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