Estee Lauder Gets Analyst Upgrade, Stock Takes Off

By
Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published March 28, 2024
Estee Lauder beauty products store

Miguel Candela / SOPA Images / LightRocket via Getty Images

Key Takeaways

  • Bank of America Securities upgraded Estee Lauder Cos.' stock Thursday and lifted the firm's price target for it, arguing the beauty products maker is set for meaningful growth ahead.
  • The analysts lifted their Estee Lauder rating to "buy" from "neutral," and raised their price target for the stock by $10 to $170.
  • The report came a day after Estee Lauder made its first products available on Amazon.

Estee Lauder Cos. (EL) shares jumped Thursday after Bank of America Securities (BofA) analysts upgraded the stock and raised their price target for it, saying they see “meaningful growth” ahead for the beauty products maker.

BofA changed its rating on Estee Lauder to "buy" from "neutral," and increased the price target from to $170 from $160.

The analysts said in a report that the company's profit and sales appear to have bottomed out, and that its “savings targets and innovation efforts” are a clear effort to adapt to the reality of a declining Chinese market.

They praised Estee Lauder for its renewed focus on new products and its move away from reliance on sales from China and the travel market.

The report came a day after Estee Lauder announced it would sell its Clinique brand in the U.S. Amazon.com Inc. (AMZN) Premium Beauty store, the first time it has put its products on that platform. 

Chief Executive Officer Fabrizio Freda said Estee Lauder was “strategically expanding our consumer reach in the U.S.,” adding that a “select few” more products would be available on Amazon over the coming months.

Estee Lauder shares were up 6.2% at $154.08 at around 2:20 p.m. ET Thursday. The stock has lost more than one-third of its value over the past 12 months.

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  1. Bank of America Securities. "Estee Lauder Cos. Inc."

  2. Estee Lauder Cos. "Clinique Launches in the U.S. Amazon Premium Beauty Store."

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