UPDATE: Morgan Stanley Reiterates On Estee Lauder Companies Following Strong Q3 Results

In a report published Monday, Morgan Stanley analyst Dara Mohsenian reiterated an Overweight rating on

, and raised the price target from $84.00 to $87.00. In the report, Morgan Stanley noted, “EL adj. Q3 EPS of $0.64 was well ahead of our on-consensus $0.55 estimate (despite a 2 cent tax rate headwind), with strong 8% timing adj. local FX sales growth, above the 6-7% consensus and market expectations in the 5-6% range. Relative to consensus, Q3 topline was 2.5% above, with 2% gross profit (GM's were 60 bps light vs. consensus) and +16% operating upside. EL performed well in a difficult environment, with 8% org. sales growth above L'Oreal (luxury) at +7% and LVMH's Perfume/Cosmetics at +5%.” Estee Lauder Companies closed on Friday at $75.62.