Deutsche Bank moved off the sidelines on Estee Lauder , citing improved business fundamentals. Analyst Steve Powers upgraded shares of the fragrance and personal care product stock to buy from hold. Powers also lifted his price target by $24 to $95, which now implies 26.3% upside from Friday’s close. With the increase, Powers holds the highest price target for the stock on Wall Street, per LSEG. Still, the average price target from analysts implies shares can decline more than 10% over the next year. He’s also one of only a few bullish analysts on the Street, with the majority of those covering the stock rating it as a hold. “Looking backwards, EL is a stock (and a company) open to criticism, having seen its value fall from near-$375 per share in early-2022 to below $50 earlier this year,” Powers wrote to clients in a Sunday note. “However, we believe that many of the root causes of this decline have now been addressed.” Powers said that a renewal of agility paired with innovation should led to recovery in growth, margins and cash. One of Estee Lauder’s biggest mistakes was its focus on China to drive growth and value creation, according to the analyst. But he said the company has shown it has handled problems related to that decision and can better face the reality of the business landscape going forward. Powers also listed inventories being in balance and investment requirements being largely met as some other reasons to be positive on the stock from here. Shares popped more than 2% in Monday’s premarket following Powers’ upgrade. The stock is slightly above flat for 2025, putting it on track to break a three-year losing streak.
