Key Stats for Estee Lauder Stock
- Pre-market price change for Estee Lauder stock: 12%
- $EL Share Price as of May. 21: $79
- 52-Week High: $122
- $EL Stock Price Target: $95
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What Happened?
Estee Lauder (EL) stock surged 13% after hours on Thursday after the company confirmed it had officially ended merger discussions with Spanish luxury house Puig, and the market cheered the news.
- The two companies had disclosed the talks just two months ago, on March 23, saying they were exploring a potential business combination that would have created a $40 billion luxury beauty giant.
- But negotiations collapsed without a deal.
CEO Stéphane de La Faverie was direct in his statement: “Today, we are reiterating our confidence in the power of our incredible brands, our talented teams, and our strength as a standalone company.”
- Part of what complicated the deal, according to Spanish publication Expansión, was Charlotte Tilbury — the founder of her namesake beauty brand, which is a Puig subsidiary.
- Tilbury is reportedly looking to renegotiate her contract and may want to exit the company she founded before her 2031 commitment date.
- Puig owns 78.5% of the brand while Tilbury holds 21.5%.
- That uncertainty made the deal harder to close.
With talks now officially over, Estee Lauder said it will continue reviewing its portfolio and remain open to future acquisitions and divestitures — on its own terms.
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What the Market Is Telling Us About Estee Lauder Stock
The jump in Estee Lauder stock suggests investors are relieved, not disappointed. A $40 billion merger would have been complex and risky, especially for a company still in the middle of a major turnaround.
- That turnaround — called “Beauty Reimagined” — is actually showing real signs of progress.
- The company raised its fiscal 2026 outlook this week, now expecting 3% organic sales growth and operating margin of 10.7% to 11%.
- EPS is expected to grow 56% to 62% year-over-year.
- For fiscal 2027, management issued a preliminary view of 3% to 5% sales growth and operating margin of 12.5% to 13%.
- Mainland China is growing again. The U.S. is stabilizing.
- Fragrance — led by brands like Le Labo, Tom Ford, and Kilian Paris — grew double digits last quarter.
- M·A·C just launched in U.S. Sephora stores and immediately became the number one lip brand in those locations.
Estee Lauder stock is recovering from a painful few years of post-pandemic weakness. The Puig deal distraction is now gone. Management can focus fully on executing the plan — and based on recent results, that plan is working.
Estee Lauder stock still has significant room to recover toward its historical highs, and today’s reaction suggests investors are ready to let it run.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
