Estee Lauder Update: Stock Run Fully Valued at $120

Riding on high growth momentum in the prestige beauty segment, consistent double digit growth rates and expanding market share despite weak macroeconomic conditions, Estée Lauder‘s (NYSE:EL) stock has swelled by more than 40% this year. The stock jumped 18% within a day of announcing its latest quarterly results and has gained 18% within the last one month. Estee Lauder, one of the leading cosmetics and beauty care players globally, competes with others such as Revlon (NYSE:REV), L’Oreal (PINK:LRLCY) and Avon Products (NYSE:AVP).

Stock Bulls Post Strong Earnings and Analyst Upgrades

The stock jumped 18% within a day of announcing its latest quarterly results last month posting 18% sales growth, market share expansion and strong business outlook. With excellent international growth, Estee Lauder also exceeded its operating margins target of 12-13% by fiscal 2013, two years in advance and now has a new 15% operating margin target. The stock has gained more than 12% over the last month, having been upgraded by analysts almost across the board after its excellent earnings run with a $135 price target and “buy” rating by Citigroup and UBS and $130 price target by JPMorgan Chase.

We have a $116 Trefis price estimate for Estee Lauder stock, almost in line with the market price.

View our detailed analysis for Estee Lauder here

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