Buckingham Research Finds Estee Lauder (EL) Attractive

Estee Lauder (NYSE: EL) just went from good to better in the eyes of Buckingham Research Group. The research firm raised its 2010 (fiscal) EPS estimates from $2.64 to $2.77 after the cosmetics maker recently posted an impressive fiscal second quarter. Buckingham’s calendar 2010 EPS estimate now stands at $3.08.

The research report – posted today – states “[the stock] deserves at least the mid point [between a P/E of 18.5 and 22.4], as it offers several years ahead of favorable product and geographic mix shift, productivity improvements and mid teen EPS growth, until it achieves at least mid-teen op. margins.”

The research also suggests Estee Lauder could begin a share buyback, fueled by strong free cash flows of $2.60 per share, and unburdened by any debt.

Buckingham Research’s price target for EL shares is $63.00.