Estee Lauder "neutral weight," target price raised

02.02.07 - Prudential Financial

NEW YORK, February 1 (newratings.com) - Analyst Constance M Maneaty of Prudential Financial maintains her "neutral weight" rating on Estee Lauder Companies Inc (EL), while raising her estimates for the company. The target price has been raised from $43 to $50.

In a research note published yesterday, the analyst mentions that the company has reported its 2Q earnings significantly ahead of the estimates. Estee Lauder's quarterly sales growth was higher than the estimates possibly on account of favourabe currency effects and the company?s initiatives to adequately utilise alternative channels of distribution, the analyst adds. The EPS estimates for 2007 and 2008 have been raised from $2.07 to $2.20 and from $2.30 to $2.40, respectively.