Estee Lauder's (EL) fiscal 2027 outlook has a degree of conservatism and flexibility, considering its stronger organic growth trajectory, UBS analysts said in a Wednesday note.
Analysts said that the company's fiscal Q4 results provide evidence of an increasingly broad-based recovery, with growth across most major geographies and improving category trends.
UBS said that while Estee Lauder benefited from tariff refunds, shipment timing in the Americas, and a gift card liability reversal in fiscal Q4, the results still reinforce confidence in the company's underlying trajectory.
"We expect the debate on long-term growth and earnings power to continue and will likely influence what multiple investors are willing to pay from here," analysts said.
UBS retained a neutral rating on the stock, but increased its price target to $106 from $86.
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