Estee Lauder ?neutral,? target price raised

21.05.08 - Credit Suisse

NEW YORK, May 21 (newratings.com) - Analyst F Goossens of Credit Suisse maintains his "neutral" rating on Estee Lauder Cos Inc (EL), while raising his estimates for the company. The target price has been raised from $44 to $46.

In a research note published this morning, the analyst mentions that the company has posted its 3Q08 EPS ahead of expectations. Although Estee Lauder?s share price is likely to appreciate initially, following the appointment of Fabrizio Freda as the new COO and president, there is limited upside to the company?s share price in the near term, the analyst says. The EPS estimates for FY08 and FY09 have been raised from $2.28 to $2.34 and from $2.61 to $2.65, respectively.