Estée Lauder (EL) Reports Better-Than-Feared 1Q Results; Stifel Reiterates Buy
Stifel reiterated a Buy rating on Estee Lauder (NYSE: EL), and raised the price target to $96.00 (from $95.00), following the company's 1Q16 earnings results. The result is better-than-feared, with sales growth upside and the reiteration of full-year sales expectations most important, particularly given reported weakness in L'Oréal’s luxury segment and concerns of broadly decelerating category growth.
Analyst Mark Astrachan commented, "Earlier today, Estée Lauder Companies reported better-than-feared F1Q16 (September) results with EPS of $0.82, compared to consensus of $0.70, on constant currency adjusted sales growth of 8%, compared to 6%-7% guidance. The company reiterated its F2016 constant currency sales growth outlook for 6%-8% while increasing adjusted EPS growth to 10%-12% (was 8%-10%)."
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Shares of Estee Lauder closed at $80.46 yesterday.