1 Wall Street analyst believes Estée Lauder stock will reach $81. Is it a buy?

Many Estee Lauder‘s (NYSE: L) Perfumes and cosmetics are perfect holiday gifts for people who appreciate these products. Are shares of the storied company a great option to buy this season? If the latest analyst opinion on the stock is any indication, the answer is an undisputed yes.

In the run-up to the holiday season, the analyst reiterated her very optimistic stance on the company’s prospects. Here’s her argument for loading onto a loader.

Last Friday, DA Davidson’s Linda Bolton Weiser published a new research note on Estée Lauder. In doing so, it maintained its current buy recommendation for the stock, at $81 per share Price target.

According to reports, Weiser’s latest update focuses on the company’s sales to China, a market currently experiencing relatively low economic growth and general consumer withdrawal.

The analyst noted that approximately 30% of sales are linked to China, and given the somewhat volatile state of the country’s economy, Estée Lauder recently suspended providing annual guidance. Weiser believes that this market will remain a sore point for the company, contributing to a 15% to 16% year-on-year sales decline in the current (second) quarter of fiscal 2025.

However, there are potential bright spots ahead, according to DA Davidson analyst. After a somewhat stressful takeover saga, Estée Lauder will soon see a revamp of its executives with the arrival on January 1 of a new CEO, company veteran Stéphane de La Faverie. In Weiser’s view, the stock price could be driven by its initial actions and observations.

Personally, I feel that Estée Lauder, which is not the most innovative company in its field, does not have tremendous potential for organic growth. However, its share price is convincingly low enough to consider a buy based on this criterion alone. I think this could be a sleeper stock, but a lot will depend on De La Faverie’s early moves, as Weiser opined.

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