Estee Lauder has ‘many positives ahead’

Piper Sandler analysts upgraded Estee Lauder (NYSE: ) to overweight from neutral in a note on Thursday, citing a more positive outlook following the company’s recent fiscal Q4 earnings report.

The firm also raised its price target on EL stock to $114 from $95, reflecting increased confidence in the company’s valuation and future prospects.

“We moved away from Monday’s FQ4 earnings report and it reset the estimate much more comfortably with current valuation levels,” the analysts noted, adding that their belief in Estee Lauder’s forward estimates strengthened.

This optimism was further strengthened after discussions with company management and insights from Coty peers regarding the state of the luxury beauty market.

According to Piper Sandler, “nothing we’ve heard in the last few days makes us deviate from this more optimistic thinking.”

Analysts highlighted Estee Lauder’s recent management shakeup as a positive development that could improve the company’s performance going forward.

Combined with a rating that suggests limited downside, Piper Sandler sees “little reason to suggest the bear thesis could develop much further here.”

Piper Sandler believes Estee Lauder has “a lot of upside ahead,” making it a compelling investment opportunity as the company addresses its challenges and capitalizes on growth in the prestige beauty market.