UPDATE: Stifel Nicolaus Raises PT to $72 on Estee Lauder on Margin Upside Outlook
Stifel Nicolaus reiterated its Buy rating on Estee Lauder (NYSE: EL) and raised its price target from $67 to $72.
Stifel Nicolaus noted, "We lift our F2013 and F2014 EPS estimates to $2.63 (was $2.61) and $3.04 (was $2.96), respectively, and our 12-month price target to $72 per share (was $67), 12.9x estimated F2014 EBITDA. We believe a premium valuation is warranted given the outlook for continued sales growth and margin upside. On EV/EBITDA, EL shares trade at an 11.7% premium to large-cap consumer names while sales growth is 71% higher than the peer average, including 3/4 of sales growth derived from volume."
Estee Lauder closed at $64.66 on Wednesday.
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