Oppenheimer analyst Rupesh Parikh reiterated a Buy rating on The Estée Lauder Companies Inc (NYSE: EL) today and set a price target of $148. The company’s shares closed yesterday at $132.33.
Parikh observed:
“Ahead of the print, we spent time updating our views on EL. We continue to look very favorably upon EL’s L-T prospects, but expect a bumpier ride from here given prospects for slowing top and bottom-line growth and increased geopolitical uncertainty. EL generates more than 85% of operating income outside of the US. We still feel comfortable with 6-7% constant currency growth (ex. M&A) and double-digit EPS delivery, which stands out in CPG land and supports our continued Outperform rating. Given the potential for less earnings upside and increased uncertainty near term, we are removing EL as a top pick and are lowering our PT to $148 from $170. This suggests upside potential of ~12% from current levels. Our updated top picks include DG, CHD, and ULTA.”
According to TipRanks.com, Parikh is a 5-star analyst with an average return of 15.7% and a 60.7% success rate. Parikh covers the Services sector, focusing on stocks such as Blue Apron Holdings Inc, United Natural Foods, and Wal-Mart Stores Inc.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for The Estée Lauder Companies Inc with a $155.57 average price target.
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Based on The Estée Lauder Companies Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $3.37 billion and net profit of $372 million. In comparison, last year the company earned revenue of $2.89 billion and had a net profit of $229 million.
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Estee Lauder Cos., Inc. engages in the manufacture and marketing of skin care, makeup, fragrance, and hair care products. It sells products under the following brand names: Estée Lauder, Clinique, Aramis, Prescriptives, Lab Series, Origins, MAC, Bobbi Brown, La Mer, Aveda, Jo Malone London, Bumble and bumble, Darphin, GoodSkin Labs, Ojon, Smashbox, Osiao, Le Labo, RODIN olio lusso, Editions de Parfums Frédéric Malle, GLAMGLOW, and By Kilian. The company was founded by Estée Lauder and Joseph Lauder in 1946 and is headquartered in New York, NY.
