Estee Lauder's (EL) turnaround is progressing, with building organic sales growth momentum and higher savings from its Profit Recovery and Growth Plan, Morgan Stanley analysts said in a Thursday note.
Analysts said the company recorded a large Q4 beat in a light seasonal quarter, provided better-than-expected fiscal 2027 guidance, and struck a positive tone on the conference call.
Morgan Stanley said that on its earnings call, the company emphasized that its growth drivers are broadening and expressed confidence that organic sales growth in the first half of fiscal 2027 will be stronger than in the second half of fiscal 2027.
Analysts increased their fiscal 2027 and fiscal 2028 EPS estimates for Estee Lauder by 2% and 1%, respectively, and noted consensus estimates are expected to rise even further.
Morgan Stanley maintained an equal-weight rating on the stock, but increased its price target to $102 from $90.
Price: $97.61, Change: $-0.41, Percent Change: -0.41%