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.
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