Raymond James upgraded Estée Lauder (NYSE: EL) from Market Perform to Strong Buy and set a $130 price target, naming the stock one of its top picks for 2026.

The firm said Estée Lauder's turnaround had shifted from a narrative phase to one focused on execution. Raymond James believed fiscal 2025 marked the earnings trough, with improving market share trends in the U.S. and category growth in China supporting faster and more consistent sales and profit growth going forward.

The analyst said Travel Retail was expected to be less of a headwind, while a shift toward faster-growing retail channels, margin rebuilding, and continued cost savings from the company's Profit Recovery & Growth Plan would support increased investment in sustainable growthD growth drivers.

Raymond James raised its fiscal 2026 and 2027 EPS estimates to $2.23 and $3.05, respectively, above Bloomberg consensus forecasts of $2.16 and $2.93. The $130 price target implied a valuation of 37x calendar-year 2027 earnings, 18x EV/EBITDA, and 3.2x EV/sales.