Estée Lauder: BofA resumes coverage as a buyer

Published: 2025-07-11 02:23:25 ET EL

Published on 07/11/2025 at 02:23

Bank of America resumed coverage of Estée Lauder on Thursday with a buy recommendation and a target price of $110, (cp: $92, +6.3%), representing 30% upside potential.The US investment bank believes that the cosmetics group's "Beauty Reimagined" plan should enable it to revive sales growth and improve profit margins.New York-based BofA is therefore forecasting operating income (EBIT) of 10% by 2027, 10% above market consensus.Geographically, China now appears to have bottomed out, while business in Hainan, a tourist island in the southeast of the country, should also return to growth, BofA adds.Finally, the acceleration of the beauty sector and the improvement in the company's operating performance should also be catalysts for a revaluation of the stock, the investment bank concludes.Copyright (c) 2025 CercleFinance.com - All rights reserved.