Estee Lauder upgraded to Buy from Hold at Deutsche Bank

Deutsche Bank upgraded Estee Lauder (EL) to Buy from Hold with a price target of $95, up from $71. The firm sees increasing evidence that the company’s strategy is diversifying well beyond China and travel retail for future growth, underpinned by moves to accelerate innovation and migrate decision-making geographically closer to where business gets done. Estee’s heavy investment requirements have been largely fulfilled such that go-forward sales growth can be better leveraged to the benefit of margin and profit recovery, with incremental commercial and capability investments funded by eliminated areas of historical cost overrun, the analyst tells investors in a research note.