UPDATE: Estee Lauder (EL) PT Raised to $235 at Stifel on Peer Performance Improvements

Stifel analyst Mark Astrachan raised the price target on Estee Lauder (NYSE: EL) to $235.00 (from $185.00) after most global beauty companies reported improving sales trends through 2Q20. For example, July is expected to be the first positive month for L’Oréal since January, following a sequential improvement from a 34% decline in April to a 5% decline in June.

The analyst maintained a Buy rating, stating "We lift our F2021 and F2022 EPS estimates to $4.98 and $6.24 reflecting less-bad-thananticipated sales trends in the June (F4Q20) and September (F1Q21) quarters and price target to $235, 38x 2022E EPS. We anticipate less bad results to drive shareprice outperformance given muted expectations. Our favorable view is based on June quarter results from international peers that generally showed accelerating sales growth through the quarter, including in Mainland China and meaningfully better-than-feared declines in Travel Retail".

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