Estee Lauder "above average," target price raised

14.08.09 - Caris & Company

NEW YORK, August 14 (newratings.com) - Analysts at Caris & Company reiterate their "above average" rating on Estee Lauder (ELAA), while raising their estimates for the company. The target price has been raised from $41 to $44.

In a research note published this morning, the analysts mention that the company has reported better-than-expected F4Q09 earnings, driven by a tax benefit and impairment charges. Estee Lauder has also reported strong cash flows, with inventories down 19% y/y. The performance of the company?s travel retail sales is likely to improve going forward, the analysts say. The EPS estimates for FY10 and FY11 have been raised from $1.55 to $1.65 and from $1.95 to $2.05, respectively.