Estée Lauder (EL): Guidance Trumps Good Results - UBS

August 22, 2016 7:54 AM EDT
Get Alerts EL Hot Sheet
Price: $75.84 -0.09%

Rating Summary:
    21 Buy, 8 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 11 | Down: 31 | New: 42
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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.

For an analyst ratings summary and ratings history on Estee Lauder click here. For more ratings news on Estee Lauder click here.

Shares of Estee Lauder closed at $91.73 yesterday.



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