Option Millionaires

[jimmybob]

Estee Lauder price target lowered to $300 from $350 at Oppenheimer
Oppenheimer analyst Rupesh Parikh lowered the firm's price target on Estee Lauder (EL) to $300 from $350 and keeps an Outperform rating on the shares. The analyst notes that since late February, Estee Lauder's shares have declined 15% versus a decrease of 4% in the S&P 500. Parikh attributes the decline to both geopolitical pressures and, more recently, China COVID-19 headwinds. He expects the China lockdowns to impact Estee Lauder more materially near-term. As a result, the analyst is now adjusting his estimates to reflect potential headwinds in Mainland China/travel retail related to COVID-19, a modest adverse impact related to Ukraine/Russia, and a stronger U.S. dollar. Parikh views current levels as an attractive entry point for longer-term players, but finds it harder to call a bottom given greater modeling risks and valuation above trough levels. He is also narrowing his top picks in his beauty coverage to just Ulta Beauty (ULTA)