Market Overview

Estee Lauder Upgraded After Q4 Report Shows Higher Sales, Lower Costs

Share:
Estee Lauder Upgraded After Q4 Report Shows Higher Sales, Lower Costs

Analysts at Argus turned bullish on Estee Lauder Companies Inc (NYSE: EL) after the company impressed investors in its fiscal fourth-quarter earnings report. The firm's John Staszak upgrades Estee Lauder's stock rating from Hold to Buy with a $125 price target as the earnings report suggests ongoing momentum moving forward.

The beauty market is seeing strong demand especially in the high-end category which bodes well for Estee Lauder as evidenced by one-third of its brands showing double digit growth in the quarter, Staszak noted. The company also saw overall strength in e-commerce and "travel sales" at major airport.

tipranks.png

Looking forward the beauty company thinks it deliver a local-currency revenue growth of up to 8 percent and double-digit earnings growth over the next three years, the analyst continued. These should be considered to be achievable targets and the analyst's long-term earnings growth rate of 14 percent remains unchanged.

Meanwhile, Estee Lauder's reputation of steadily raising its dividend, which yields around 1.3 percent, should remain in place moving forward.

Finally, Estee Lauder's strong performance in the quarter also prompted the analyst to raise his rating on the entire consumer staples sector from Underweight to Market Weight. Investors are also encouraged to allocate up to 10 percent of their investments to this group.

Related Links:

Jefferies Sees Beauties And Beasts In The Modern Cosmetic Space

Snapchat Effect Gives Booming Cosmetic Industry A Makeover
_______
Image Credit: By Pear285 (talk) (Uploads) - Pear285 (talk) (Uploads), CC0, via Wikimedia Commons

Latest Ratings for EL

DateFirmActionFromTo
Sep 2020Raymond JamesMaintainsOutperform
Aug 2020Argus ResearchMaintainsBuy
Aug 2020RBC CapitalUpgradesSector PerformOutperform

View More Analyst Ratings for EL
View the Latest Analyst Ratings

 

Related Articles (EL)

View Comments and Join the Discussion!

Posted-In: ArgusAnalyst Color Earnings Long Ideas News Upgrades Analyst Ratings Trading Ideas Best of Benzinga

Latest Ratings

StockFirmActionPT
JBLRBC CapitalMaintains38.0
COSTRBC CapitalMaintains412.0
COSTMKM PartnersMaintains325.0
NOWStifelMaintains500.0
MTNTruist SecuritiesMaintains243.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com