Estee Lauder Price Target Raised by RBC

Estee Lauder received a price-target increase Monday from RBC Capital Markets following the skin-care and makeup company’s Friday report of better-than-expected fiscal Q4 results and guidance for Q1 and fiscal 2018 that topped Street views. The new price target is $115 per share, up from $100. The stock closed up 7.8% at $105.92 in Friday’s session after hitting a fresh record high on the Q4 report at $106.45. RBC kept its investment rating on the stock at outperform.

For the quarter ended in June, Estee Lauder reported adjusted earnings per share of $0.51, up from $0.42 a year earlier and above analysts’ mean estimate of $0.43. Net sales climbed to $2.89 billion from $2.65 billion in the year-earlier period, topping the Street’s consensus estimate of $2.86 billion. For Q1, the company forecast adjusted EPS of $.94 to $.97 and net sales growth of 9% to 10%, implying a range of $3.13 billion to $3.15 billion. In comparison, analysts’ mean estimates had been at $0.92 and $3.08 billion; those estimates have since increased to $0.96 and $3.15 billion, respectively.

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