Estée Lauder (EL): Guidance Trumps Good Results - UBS
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UBS analyst, Stephen Powers reiterated his Buy rating on shares of Estee Lauder (NYSE: EL) along with a price target of $104 after EL's FYQ4 performance confirmed buy-side expectations of +7% FXneutral growth.
EL partly allayed fears of structurally lower growth as it guided to +6-7% FX-neutral growth in FY17 (vs. fears of +5-7%) and maintained its +6-8% long-term growth outlook. This should be considered a relative positive, along with EL's FYQ4 EPS beat ($0.43 vs. Consensus of $0.40).
However, this was more than offset by EL's potentially conservative FY17 EPS guidance of $3.38-$3.44 (Consensus of $3.53) and reduced long-term margin target, driving the stock down Friday.
Shares of Estee Lauder closed at $91.73 yesterday.
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