Estee Lauder upgraded to "outperform" - update

07.05.07 - Credit Suisse

NEW YORK, May 7 (newratings.com) - Analyst F Goossens of Credit Suisse upgrades Estee Lauder (EL) from "neutral" to "outperform," while reducing his estimates for the company. The 12-month target price is set to $53.

In a research note published on May 4, the analyst mentions that the upgrade in rating is based on valuation. The company has reported its 3Q07 EPS short of the estimates and the consensus. Estee Lauder?s share price declined by 7.3% on the day the company reported disappointing EPS for the quarter, the analyst say. The EPS estimates for 2007 and 2008 have been reduced to $2.21 and $2.42, respectively.