HSBC Downgrades The Estée Lauder Companies (EL) to Hold from Buy – Here’s Why

Group 1 - The Estée Lauder Companies Inc. (NYSE:EL) has been downgraded to Hold from Buy by HSBC, with a price target adjustment to $106 from $105, citing "modest" organic sales growth that underwhelmed investor expectations [1] - B. Riley raised the price target for Estée Lauder to $105 from $100 while maintaining a Neutral rating, attributing the increase to stronger margin assumptions despite elevated expectations prior to the fiscal Q2 report [2] - Estée Lauder is a globally recognized manufacturer of hair care, skincare, makeup, and fragrance products, with a diverse portfolio including brands like Clinique, MAC, and La Mer, sold through various retail channels [3] Group 2 - The company is facing challenges in organic sales growth, particularly in fiscal Q3, with tougher conditions in China compared to easier comparisons in the U.S. expected to offset each other in the second half of the fiscal year [1] - Despite the potential of Estée Lauder as an investment, some analysts suggest that certain AI stocks may offer greater upside potential and less downside risk [4]