Piper Jaffray Remains Bullish on Estée Lauder (EL) as Survey Reinforces Positive Bias

Piper Jaffray reiterated an Overweight rating and $99.00 price target on Estée Lauder (NYSE: EL) following a proprietary survey, along with recent channel checks. Alongside home goods, personal care was the only category to see increases in spending. EL brand share, specifically in cosmetics, continues to grow from a low double digit to a low teens percentage over the last couple of years. This equates to reported growth above the industry average and reinforces the company's 6-8% CC sales guidance.

Analyst Stephanie Wissink commented, "We are reiterating our Overweight rating following a proprietary survey of approx 1,000 women and recent channel checks that point to solid QTD sales and (early) new product launches. We think EL is positioned to take share in key channels through product innovation and portfolio management. EL brands continue to gain share in our surveys and in a backdrop of higher beauty spending and intent to spend, we are confident in 6-8% CC topline growth. We are closely monitoring marketing initiatives behind MAC, the launch of Estee Edit (we found it at Sephora...early), and initiatives globally in channels including specialty, online, and travel retail. Our bias to estimates and our PT is higher."

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 $92.20 yesterday.

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