Estée Lauder up after Barclays upgrades to 'overweight'
EL•Barclays upgraded Estée Lauder to “overweight” from “equal weight” and raised its price target to $108 from $97. The brokerage cited projected sales growth and the company’s earnings profile over the next several years.
1. Barclays raises rating
Barclays upgraded Estée Lauder to “overweight” from “equal weight” and raised its price target to $108 from $97. The brokerage said the company’s projected sales growth and earnings profile over the next several years make it one of the most attractive companies in the broader global consumer staples index.
2. Turnaround progress
Barclays said that seven quarters after Estée Lauder unveiled its turnaround plan, the company had delivered more balanced revenue growth, despite expectations that reshaping its operating model would take significant time and investment. The brokerage noted growth across regions, expected North American growth to remain elevated in the current quarter, and said operating-model changes could support continued reinvestment while driving EBIT margins into the high teens over time.
