Estée Lauder initiated with "average"

22.05.08 - Caris & Company

NEW YORK, May 22 (newratings.com) - Analyst Linda Bolton Weiser of Caris & Company initiates coverage of The Estée Lauder Cos Inc (EL) with an "average" rating. The target price is set to $51.

In a research note published this morning, the analyst mentions that the company has appointed Fabrizio Freda as its new president and Chief Operation Officer (COO), with the intentions of naming him as the next CEO in the forthcoming 24 months. Estée Lauder has the potential to generate above-average annual organic sales growth of 6%-8% going forward, driven by its alternative distribution channels in North America and the international markets, the analyst says. The company is facing SG&A cost issues and has posted its profitability short of expectations in the recent years, Caris & Company adds.