BofA lowered the firm’s price target on Estee Lauder (EL) to $120 from $130 and keeps a Buy rating on the shares. Estee Lauder confirmed they were in discussion to merge with European beauty conglomerate Puig, notes the analyst, who points out that Puig is due to report results on April 28 and Estee Lauder on May 1. Either could shed more light on a potential transaction during their calls, notes the analyst, who estimates that at the current share price a 100% equity deal would be 25% EPS accretive to Estee Lauder.
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