JPMorgan Reiterates Overweight Rating on Estee Lauder (EL)

JPMorgan analyst Andrea Teixeira reiterated an Overweight rating and $129.00 price target on Estee Lauder (NYSE: EL).

The analyst comments "EL (OW) reported 4QFY24 adj. EPS of $0.64, well above high end of guidance range of $0.18 to $0.28 and also significantly above JPM/Street forecasts of $0.26/$0.27 heading into the print. We note the EPS beat was mainly driven by lower SG&A ratio ($0.27 vs. JPMe) and more favorable tax impact due to restructuring/other items (+$0.19 vs. JPMe), partially offset by other non-operational items (-$0.07 vs. JPMe) and worse gross margin (-$0.02 vs. JPMe). Total company organic sales growth (OSG) of +7.0%, was closer to the lower end of guidance range of +6% to +10% and below our forecast of +8.3% but roughly met consensus estimate of +7.2% (as per Consensus Metrix or CM). For more context on the beat, SG&A ratio of 62.7% positively surprised (-334 bps vs. JPMe/-364 bps YOY) while gross margin of 71.8% was slightly below our estimate by -19 bps vs. JPMe/+341 bps YOY, leading to an EBIT margin of 9.0% or a beat of +315 bps vs. our forecast."

For an analyst ratings summary and ratings history on Estee Lauder click here. For more ratings news on Estee Lauder click here.

Shares of Estee Lauder closed at $94.97 yesterday.

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