Goldman Sachs Group, Inc. sounds the "buy" horn: Estee Lauder Companies Inc. Class A (EL.US) is at a turning point, and now is a good opportunity to increase holdings.

Goldman Sachs Group, Inc. has upgraded its rating on Estee Lauder Companies Inc. Class A (EL.US) from "neutral" to "buy", believing that the company is "turning the tide" through a series of actions. Goldman Sachs Group, Inc. predicts that Estee Lauder Companies Inc. Class A could potentially recover revenue growth as early as the first quarter of this fiscal year, and is expected to achieve double-digit levels of earnings before interest and taxes (EBIT) by fiscal year 2027. Analyst Bonnie Herzog believes that, under the strategic initiatives implemented by management, this beauty company has reached a "fundamental inflection point." These initiatives include launching brand products on Amazon.com, Inc. (AMZN.US) and TikTok platforms, as well as adopting a "consumer-first" strategy to accelerate the innovation process. Herzog stated in a report to clients, "We believe that management is moving in the right direction with the 'Beauty Reimagined' strategic vision." She added that the improving trends in the Chinese market have made the current stock price more attractive, and recommended clients to "hold Estee Lauder Companies Inc. Class A stock". The turnaround of Estee Lauder Companies Inc. Class A is not achieved overnight. Previously, the company was plagued by two major factors: a significant decline in travel retail business during the pandemic (which has not fully recovered to date), and competition from more agile competitors. Travel retail once contributed nearly a third of the company's sales, but by fiscal year 2025, this percentage had dropped to only 15%. Even in August 2025, Estee Lauder Companies Inc. Class A was still troubled by the decline in travel retail business and warned that profits for fiscal year 2026 would be affected by tariffs, restructuring costs, and weak sales growth. However, Wall Street analysts, including Herzog, now believe that the toughest times for Estee Lauder Companies Inc. Class A may be behind them. Recently, HSBC and Deutsche Bank Aktiengesellschaft have both upgraded their ratings on the stock to "buy", while Bank of America Corp has maintained its "buy" rating. Last Friday, due to market sell-offs, Estee Lauder Companies Inc. Class A's stock price dropped by nearly 7%; this Monday, with optimistic outlook from Goldman Sachs Group, Inc., the stock rebounded by 6%, and also lifted the stock prices of Coty Inc. Class A (COTY.US), e.l.f. Beauty (ELF.US), Ulta Beauty (ULTA.US), and Beauty Health Corporation (SKIN.US) among other beauty industry peers.