Estee Lauder To Encounter Asia Travel Retail Pressure Through 1HFY24, Says Analyst
Portfolio Pulse from Shivani Kumaresan
Telsey Advisory Group analyst Dana Telsey has reiterated an Outperform rating on Estee Lauder Companies Inc (NYSE:EL) with a price target of $250. The company is expected to report 4Q23 earnings on August 18, with an estimated EPS of $0.00 and a 4.3% Y/Y revenue increase to $3.714 billion. The company is expected to face Asia travel retail pressure due to headwinds in Korea and retailer inventory tightening in Hainan through 1H24. Despite this, the analyst is optimistic about the recovery prospects and the strength in demand across the rest of the business.
August 14, 2023 | 6:54 pm
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Estee Lauder is expected to face Asia travel retail pressure through 1H24, but the analyst is optimistic about the recovery prospects and the strength in demand across the rest of the business.
The company is expected to face headwinds in Asia travel retail due to issues in Korea and retailer inventory tightening in Hainan. However, the analyst believes that the company can recover over time, given historical spending patterns and incentives for Chinese to shop abroad. This, along with the underlying demand in the market for Estee Lauder's products, could potentially offset the negative impact.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100