Estee Lauder (EL) could see high-single digit growth in fiscal Q1 travel retail after closing fiscal 2025 with a relatively "clean" trade inventory for travel retail, Deutsche Bank said in a Thursday note.
Deutsche Bank said US/China market share trends also remain "encouraging" for the company and its management seems on track with with tariff mitigation and productivity benefits. The investment firm said it expects "a slightly improved" fiscal 2026 gross/operating margin profile for Estee Lauder.
The company, however, faces restructuring costs next year, shipment/consumption mismatches in North America into fiscal Q1, higher fiscal 2026 tax rates, and potential market softness in Europe, Deutsche Bank added.
Deutsche Bank raised its price target on Estee Lauder stock to $100 from $98, while reiterating a buy rating.
Price: 88.30, Change: +1.73, Percent Change: +2.00
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