BofA resumes Puig with 'buy' on valuation after Estee Lauder talks end

Estee Lauder Companies

27/05/2026 11:02

** BofA resumes Puig PUIGb.MC with "buy" from "no rating" after merger talks with Estee Lauder EL.N ended, leaving the Spanish beauty and fragrance maker on an attractive valuation
** With shares at a 34% discount to peers, the broker notes this "cheap valuation could mean strong accretion opportunity" if the board seeks to combine with another beauty firm
** Expects revenue growth outperforming the prestige beauty market, driven by the expansion of makeup brand Charlotte Tilbury, China fragrance sales and skincare market share gains
** Sets a price target of 17.5 euros and says the first capital markets day event should clarify the growth and margin accretion strategy ahead
** Adds earnings stabilisation following an 18-month downgrade cycle is a key catalyst for a re-rating with the end of the fragrance super-cycle well understood by investors and consensus
** Shares up 4.1%, top gainers on the Spanish blue-chip index .IBEX 

 (Reporting by Marta Serafinko in Gdansk)
 ((marta.serafinko@thomsonreuters.com))