Morgan Stanley Cuts Estee Lauder Price Target By 18% Citing Inventory Issues - Here's Why
Portfolio Pulse from Shivani Kumaresan
Morgan Stanley analyst Dara Mohsenian has reiterated an Overweight rating on Estee Lauder Companies Inc (NYSE:EL) but lowered the price target from $243 to $200. The cut is due to weaker than expected FY24 EPS guidance and inventory issues in Hainan. The analyst expects a robust recovery as Hainan issues dissipate and believes EL is now trying to guide conservatively.
August 21, 2023 | 6:57 pm
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NEGATIVE IMPACT
Estee Lauder's price target has been lowered by Morgan Stanley due to weaker than expected FY24 EPS guidance and inventory issues. However, a robust recovery is expected as these issues dissipate.
The lowered price target and weaker than expected FY24 EPS guidance are negative indicators for Estee Lauder's stock. However, the analyst's expectation of a robust recovery as inventory issues dissipate could mitigate the negative impact in the longer term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100