Jefferies Cuts Price Target on Estée Lauder (EL) Following Too Faced Acquisition

November 16, 2016 7:45 AM EST
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Price: $79.29 +1.23%

Rating Summary:
    21 Buy, 8 Hold, 1 Sell

Rating Trend: Down Down

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Jefferies maintained a Hold rating on Estée Lauder (NYSE: EL), and cut the price target to $83.00 (from $85.00), following the company's acquisition of Too Faced. The $1.45B deal is expected to close in Dec. 2016.

Analyst Kevin Grundy commented, "We are lifting our FY18-19 EPS est. following EL's acquisition of Too Faced for $1.45B (5.4x sales). The deal is expected to be moderately dilutive to FY17 EPS and improve thereafter (we est. +1-2% in FY18). We view the acquisition as sensible and consistent with EL's strategy of increasing its exposure to faster-growing channels (online, specialty-multi) and key demos (millennials). Maintain Hold, PT to $83, with deal value offset by lower group multiple."

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 $77.75 yesterday.



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