Estee Lauder "hold," target price reduced - update

20.08.07 - Deutsche Securities

NEW YORK, August 20 (newratings.com) - Analysts at Deutsche Bank Securities maintain their "hold" rating on Estee Lauder Cos Inc (EL). The target price has been reduced from $51 to $46.

In a research note published on August 17, the analysts mention that competition in the global beauty industry is intensifying. Estee Lauder would need to focus on geographic expansion in order to sustain growth in the long term and due to the soft US department store trends, consolidation and increasingly demanding retailer terms, the analysts say. Deutsche Bank Securities add, however, that geographic expansion involves high costs.