Estee Lauder downgraded to "neutral"

11.12.06 - Banc of America

NEW YORK, December 11 (newratings.com) - Analysts at Banc of America Securities downgrade Estee Lauder (EL) from "buy" to "neutral," while reducing their estimates for the company. The target price is set to $43.

In a research note published this morning, the analysts mention that Estee Lauder's F2H07 comps are challenging, calling for 52% EPS growth, as compared to 6% in 1H. The EPS estimate for FY07 has been reduced from $2.10 to $2.09 to partly reflect the below-plan performance of May stores.