Two Wall Street firms lifted their price targets on Estee Lauder Companies (NYSE:EL | EL Price Prediction) stock to $85 on Monday, following a 40% third-quarter earnings beat that reignited the China comeback narrative. Canaccord raised its target from $80 and maintained a Hold rating, while Wells Fargo lifted its target from $75 and kept an Equal Weight rating.
The matching $85 marks signal a cautious thaw in Wall Street sentiment toward Estee Lauder stock, even with both firms still sidelined on rating. For prudent investors, the price target raised actions point to tangible operational progress without endorsing a full re-rating yet.
| Ticker | Company | Firm | Action | Old Rating | New Rating | Old Target | New Target |
|---|---|---|---|---|---|---|---|
| EL | Estee Lauder | Canaccord | Price target raised | Hold | Hold | $80 | $85 |
| EL | Estee Lauder | Wells Fargo | Price target raised | Equal Weight | Equal Weight | $75 | $85 |
The Analyst’s Case
Canaccord’s revision reflects the Q3 fiscal year 2026 (FY2026) beat alongside share gains in Mainland China, growth across all product categories, and continued progress on operational efficiency and cost-cutting initiatives. The firm sees the Estee Lauder turnaround executing, even while staying neutral on valuation.
Wells Fargo’s call leans on guidance: accelerating organic sales into Q4 and FY27 and firming fiscal 2027 operating margin targets give a more tangible direction of travel. The firm flagged a potential PUIG transaction as an open variable that raises the bar.
Inside the Q3 Print
Estee Lauder posted adjusted earnings per share of $0.91 on revenue of $3.71 billion, with sales rising 5% year over year. Mainland China revenue climbed 11%, marking the third straight quarter of outperforming prestige beauty.
Fragrance led with 13% growth, while skin care, makeup, and hair care all rose. Adjusted operating margin expanded 360 basis points to 15%, validating the Profit Recovery and Growth Plan.
Why the Move Matters Now
Management raised its FY2026 adjusted EPS guidance to $2.35 to $2.45 and previewed FY2027 operating margins approaching 13%. Given Estee Lauder’s history with guidance, the firmer FY2027 framework is what Wall Street is rewarding most.
EL stock trades at $83, down 21% year to date but up 20% over the past month. The forward P/E ratio sits at 26x, with the broader analyst consensus target at $95.59.
What It Means for Your Portfolio
The bull case rests on China share gains, broad category growth, margin expansion, and a clearer FY2027 path. CEO Stéphane de La Faverie declared that “Fiscal 2026 is promising to be the pivotal year we intended”, with margin expansion for the first time in four years.
The bear case is real. Both firms remain sidelined, travel retail recovery is uneven, indie cosmetics rivals keep pressuring the low end, and FY2027 expectations are now elevated. Estee Lauder shares still trade well below the $121.25 52-week high, and the analyst mix tilts toward 13 Hold ratings.
Prudent investors should monitor Q4 FY2026 results, Mainland China sell-through, FY2027 organic sales delivery, and any PUIG transaction headlines. Estee Lauder stock looks like a watch-list candidate: the turnaround is taking shape, though the price target raised actions still come wrapped in caution.
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