Estée Lauder (EL) is higher today after a sharp pullback last week tied to investor pushback around the potential Puig combination. With no definitive deal announced and sentiment heavily washed out, buyers are stepping back in on the view that the company retains strategic options in fragrance and that any transaction would likely take time—setting up a relief rally from depressed levels.

Market focus remains on the confirmed discussions about a potential business combination with Spain’s Puig, a tie-up that would deepen Estée Lauder’s exposure to fragrance—one of the stronger pockets in prestige beauty. At the same time, recent analyst notes and price-target increases have helped stabilize expectations after the initial merger headline sent EL sharply lower, giving today’s rebound a “re-rating” feel rather than a single-news-item spike.

Traders will be tracking for any clarification on timing, structure (cash vs. stock), governance, and potential divestitures to address overlap and regulatory concerns. Until there is a firm announcement, EL is likely to trade on swings in deal probability, plus incremental reads on China demand and travel retail trends—two key variables that have been central to the company’s turnaround narrative.