Goldman Sachs Reinstates Buy Rating for Estée Lauder, Sets $100 Target
Goldman Sachs sees potential for Estée Lauder, raising its price target to $100, a 20.09% upside from the current price.
Key Points
- Goldman Sachs reinstated its buy rating for The Estée Lauder Companies Inc. (NYSE: EL) on June 22, 2026, with a new price target of $100.
- Goldman Sachs's $100 price target implies 20.09% upside from The Estée Lauder Companies Inc.'s ($EL) current $83.27 share price.
- Shares of Estée Lauder traded near $84.81 on Monday, with a market cap of about $30.68 billion and a forward P/E ratio of 26.63.
- Insiders, including Charlene Barshefsky and William Lauder, made recent purchases, while analysts such as Citigroup and JP Morgan maintained buy ratings.
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Goldman Sachs has reinstated its buy rating for The Estée Lauder Companies Inc. (NYSE: EL), setting a new price target of $100. This update, made by analyst Bonnie Herzog on June 22, 2026, reflects a positive outlook on the company's future performance.
Goldman Sachs vs. the S&P 500
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The Estée Lauder Companies Inc. Stock Down 19.2%
Shares of Estée Lauder traded near $84.81 on Monday. The company, which operates in the consumer defensive sector, has a market cap of approximately $30.68 billion. It holds a forward P/E ratio of 26.63, suggesting investor expectations of growth. The stock's 52-week range has seen lows of $66.22 and highs of $121.64. Estée Lauder's 50-day moving average is $81.70, while its 200-day moving average is $93.16. The company has a current ratio of 1.27 and a quick ratio of 0.82, with a debt-to-equity ratio of 232.91.
$EL price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
In its latest financial results, Estée Lauder reported revenue of $14.83 billion with a growth rate of 4.6%. Despite this, the company posted a net margin of -1.67% and a return on equity of -5.95%, indicating challenges in profitability. Investors will be looking towards the next earnings report due on August 19, 2026, for further insights.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
6 target raises vs 2 cuts.
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EPS & revenue
EPS beat estimates by 36.2%. Revenue missed estimates by 2.3%.
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Profit surprise
EBITDA missed by 28 percent. Operating income missed by 38 percent.
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Pre-earnings setup
Expectations were about average.
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Analyst signal
6 target raises, 2 target cuts.
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Earnings quality
Gross margin down 3.9 points. Operating margin up 1.0 points. Positive free cash flow.
Earnings Call Summary
Estée Lauder returned to growth with a three percent organic sales increase in the quarter, with strong performance in Mainland China and fragrance. The company expanded operating margins by 300 basis points and beat earnings per share expectations by raising unit sales and executing cost cuts through their restructuring plan. Management emphasized that new product launches, expanded online channels like Amazon and TikTok Shop, and stronger consumer demand in China are driving momentum heading into the holiday season.
Guidance The company expects flat to three percent organic sales growth for the full year. Management said the first half should be stronger because of easier comparisons, but the second half will face tougher comparisons to last year. They are investing in consumer-facing items like stores and marketing while reducing other costs to improve profit margins over time.
Neutral report. Results and guidance were close to expectations, with limited evidence of a reset either way.
Dividend
Estée Lauder pays an annual dividend rate of $1.40, yielding 1.65%. The dividend payout ratio stands at 471.43%, reflecting a significant commitment to returning capital to shareholders.
Insider Buying and Selling at The Estée Lauder Companies Inc.
Recent insider activity at Estée Lauder includes several purchases on June 15, 2026. Charlene Barshefsky acquired 92 shares, Annabelle Yu Long bought 3 shares, and William Lauder purchased 3 shares, all at an average price of $90 each. These transactions were not part of a pre-planned trading program.
Analysts Set New Price Targets
On June 22, 2026, Goldman Sachs reinstated its buy rating for Estée Lauder with a $100 price target. This aligns with other analysts, such as Citigroup and JP Morgan, who have maintained buy ratings with targets of $110 and $99, respectively. The consensus among analysts is a buy, with a mean target price of $95.12 based on 25 opinions.
About The Estée Lauder Companies Inc.
The Estée Lauder Companies Inc. is a global leader in the beauty industry, specializing in skincare, makeup, fragrance, and hair care products. Founded in 1946 and headquartered in New York, the company markets its products under various brands, including La Mer, Jo Malone London, and Estée Lauder. With over 40,470 employees, Estée Lauder distributes its products through department stores, specialty retailers, and online platforms worldwide.
Bottom Line
Goldman Sachs' reinstatement of a buy rating and a $100 price target signals confidence in Estée Lauder's potential growth. Investors should note that while the company's financials show some areas of concern, the market's overall sentiment remains positive. As always, it's important to remember that analyst ratings are forward-looking and based on current assessments, which may change as new information becomes available.
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