Goldman Sachs reinstated a Buy rating on Estee Lauder with a $100 price target, forecasting 4.5% revenue growth in fiscal 2026 and 2027 and EPS rising to $2.44. It credited the Beauty Reimagined strategy, One ELC model and 300 basis points of YTD margin expansion, supported by $1.0–1.2 billion cost savings.
Goldman Sachs reinstated coverage of The Estée Lauder Companies with a Buy rating and set a $100 price target, citing underappreciated sales and earnings resilience after three years of revenue declines.
The bank forecasts 4.5% revenue growth in both fiscal 2026 and 2027, with EPS rising to $2.44 in fiscal 2026 from $1.51 a year earlier, and projects 18% EBITDA and 40% EPS CAGRs from calendar years 2025 to 2027.
Estee Lauder’s Beauty Reimagined strategy and One ELC operating model have driven over 300 basis points of operating margin expansion YTD; China now accounts for 19% of sales with market share gains in seven of eight quarters, while travel retail exposure has fallen to 15%.
Cost-cutting under the Profit Recovery and Growth Plan targets $1.0–1.2 billion in annual savings and up to 10,000 job cuts for 450 basis points of EBIT margin gains through fiscal 2029, but risks include slower market-share gains, weaker demand, Middle East disruptions and execution challenges; valuation remains attractive.
