Estee Lauder Downgraded

It was reported on 22 August that Estee lauder Companies had been downgraded by analysts at Credit Suisse from “outperform” to “neutral”. The target price has been reduced from $53 to $44.

“The analysts mention that Estee Lauder’s share price has declined by 4% since the company reported its 4Q07 results, as compared to a gain of 2.9% in the S&P 500 index. The decline was primarily due to Estee Lauder’s cautious guidance for 1H08 on account of the company’s decision to increase the spending in the faster-growing international markets and weakness in the department store channel of North America, the analysts say. The EPS estimate for FY08 has been reduced from $2.42 to $2.27.”

Source

~ by A girl on August 25, 2007.