Estée Lauder secures Barclays upgrade as stock rises

• Barclays upgraded Estée Lauder stock to an overweight rating and increased the price target to $108.
• The cosmetics maker saw its shares rise 2.2% to $93.98 during premarket trading.
• Barclays expects structural changes to the operating model to drive higher margins and support reinvestment.

Estée Lauder (NYSE:EL) secured an overweight rating from Barclays as premarket shares increased 2.2% to $93.98.

The rating change contrasted with a broader year-to-date decline, as the stock had fallen approximately 12% prior to the latest market close.

Barclays stated that the projected sales growth and earnings profile make the business one of the most attractive companies in the global consumer staples index.

The brokerage firm reported that the cosmetics maker delivered more balanced revenue growth seven quarters after unveiling its turnaround plan.

Following the announcement, Estée Lauder's share price was up at $93.98.

Barclays forecasted that structural changes to the operating model could support continued reinvestment while driving margins into the high teens over time.

Market data compiled by LSEG indicates an average rating of buy across 44 brokerages, with a median price target of $129 for the cosmetic business.