Wells Fargo has increased its price target for Estée Lauder (EL) to $230, citing strong brand resilience and global expansion potential. The move follows Raymond James' designation of the company as a top pick for 2026, reinforcing bullish sentiment among institutional investors.
- Wells Fargo raised Estée Lauder's price target to $230 from $205.
- Raymond James named Estée Lauder a 2026 top pick in the consumer discretionary sector.
- Company's recent earnings beat revenue and EPS forecasts by 3% and 7%.
- EL stock trades near $208, implying ~10.6% upside to the new target.
- Strategic focus on digital channels and emerging markets supports long-term growth.
- Dividend yield remains stable at 1.8%, attracting income-oriented investors.
Estée Lauder (EL) has gained momentum in equity markets after Wells Fargo upgraded its price target to $230, up from a prior estimate of $205. The revision reflects improved expectations for the company’s near-term revenue growth, margin recovery, and international market penetration, particularly in Asia and Latin America. The firm highlighted the brand’s diversified portfolio, including Clinique, Aveda, and La Mer, as key drivers of sustainable performance. Raymond James further bolstered market confidence by naming Estée Lauder a 2026 top pick within the consumer discretionary sector. The firm cited improving consumer demand for premium beauty products, successful digital transformation initiatives, and disciplined inventory management as structural advantages. This dual endorsement from two major financial institutions marks a significant shift in sentiment, especially following the company’s recent quarterly results that exceeded revenue and earnings forecasts by 3% and 7%, respectively. The stock’s forward-looking performance is now being closely watched by both institutional and retail investors. With EL currently trading near $208, the $230 target implies a potential upside of approximately 10.6% over the next 12 months. Analysts note that the company’s strategic focus on direct-to-consumer channels and emerging markets could deliver double-digit revenue growth in 2025 and 2026, supported by a stable dividend yield of 1.8%. The combined momentum has prompted increased trading volume, with options activity showing heightened call buying interest. Investment managers across asset classes are reassessing their allocations to high-quality consumer discretionary stocks, with Estée Lauder emerging as a preferred exposure in the personal care segment.