Deutsche Bank analysts provided their outlook on The Estée Lauder Companies Inc. (NYSE:EL) ahead of the company’s upcoming Q2/23 results, scheduled to be reported on February 2.

Acknowledging a wide range of potential outcomes, the analysts expect the company to deliver Q2 results slightly ahead of its own outlook, mainly owing to less adverse FX trends.

Despite this favorability, the analysts believe the company will broadly (and prudently) reaffirm its fiscal 2023 EPS outlook, as benefits from FX improvement are offset by absorbing dilution from the Tom Ford acquisition and lingering uncertainty regarding the pacing of recovery of normal demand in China near term and risks of degrading demand in the US/Europe.

The analysts raised their price target on the company’s shares to $290 from $266 while maintaining their Buy rating.