Estée Lauder: HSBC upgrades stock

Published: 2025-06-27 07:11:18 ET EL

Published on 06/27/2025 at 07:11

HSBC has upgraded Estée Lauder shares from 'hold' to 'buy', with a target price raised from $80 to $99 (pmt: $79, +3%); its new TP now represents 17% upside potential for the cosmetics group's stock.The broker explains that it is lowering its WACC, thanks to the safety net provided by the restructuring plan, and belatedly reducing its estimates after not having updated them for some time.Whether based on our new estimates or the consensus on results, the group should almost double its profits (admittedly from a very low level) between fiscal years 2025 and 2027, HSBC nevertheless estimates.This is mainly due to cost reductions and efficiency gains from the reorganization rather than revenue growth, although we are seeing some rebound on that front, the broker adds.Copyright (c) 2025 CercleFinance.com - All rights reserved.