Jefferies Cuts Price Target on Estée Lauder (EL) Following Too Faced Acquisition
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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."
Shares of Estee Lauder closed at $77.75 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst PT Change, Mergers and Acquisitions
Related EntitiesJefferies & Co, Definitive Agreement
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