Core Viewpoint - Estée Lauder's stock has seen a significant surge following an upgrade from Deutsche Bank, indicating improved fundamentals and a potential recovery in the global beauty market [1][4]. Group 1: Stock Performance - Following the upgrade, Estée Lauder shares climbed nearly 5% on Monday, making it one of the top performers in the S&P 500 [4]. - Over the past five trading sessions, the stock has increased by 6.98%, and it has risen 16.24% over the last month, although it remains down more than 32% year-over-year [4]. Group 2: Analyst Insights - Deutsche Bank analyst Stephen Powers upgraded Estée Lauder from Hold to Buy and raised the price target from $71 to $95, suggesting a potential upside of over 20% from the price of $77.86 at the time of publication [3]. - Powers noted that previous inventory missteps and overstock issues that negatively impacted earnings are largely resolved, allowing for improved margins and top-line growth [6]. Group 3: Strategic Shifts - Estée Lauder is undergoing a strategic shift from a heavy reliance on Chinese demand to a more diversified global approach, which includes localized decision-making and innovation across core brands [5]. - The company has completed major supply chain investments, providing operational flexibility to enhance margins and accelerate growth [6]. - There are early signs of stabilization in the broader beauty industry, particularly in key markets such as China and the U.S. [6].