Estee Lauder downgraded to Sell from Neutral at Rothschild & Co Redburn

Rothschild & Co Redburn analyst Chris Pitcher downgraded Estee Lauder (EL) to Sell from Neutral with a price target of $70, down from $83. The company is early in its transformation and the shares have rally on the hopes of a strong turnaround, the analyst tells investors in a research note. However, the firm believes that despite improving sales growth, Estee needs deeper investment, which puts its scale of the margin recovery at risk.