Estée Lauder(US:EL) Zhi Tong Cai Jing·2025-10-14 07:14Core Viewpoint - Goldman Sachs upgraded Estée Lauder (EL.US) from "Neutral" to "Buy," believing the company is "turning the corner" through various initiatives [1] Group 1: Company Initiatives - Goldman Sachs predicts Estée Lauder may restore revenue growth as early as Q1 of the current fiscal year, with EBIT margins expected to reach double digits by FY2027 [1] - Analyst Bonnie Herzog noted that the company has entered a "fundamental inflection point" driven by management's strategic initiatives, including launching brand products on Amazon (AMZN.US) and TikTok, and adopting a "consumer-first" strategy to accelerate innovation [1] - Herzog emphasized that management is moving in the right direction with the "Beauty Reimagined" strategic vision [1] Group 2: Market Conditions and Analyst Sentiment - Estée Lauder has faced challenges from a significant decline in travel retail sales during the pandemic, which has not fully recovered, and competition from more agile rivals [2] - Travel retail, which once contributed nearly one-third of the company's sales, is projected to drop to only 15% by FY2025 [2] - Analysts, including Herzog, now believe the company's toughest times may be over, with HSBC and Deutsche Bank upgrading the stock to "Buy," while Bank of America maintains its "Buy" rating [2] Group 3: Stock Performance - Following a nearly 7% drop in Estée Lauder's stock price due to market sell-off, Goldman Sachs provided an optimistic outlook, leading to a 6% rebound in the stock price, which also positively impacted peers like Coty (COTY.US), e.l.f. Beauty (ELF.US), Ulta Beauty (ULTA.US), and Beauty Health (SKIN.US) [2]