Telsey Advisory analyst Dana Telsey maintains $Estee Lauder (EL.US)$ with a hold rating, and adjusts the target price from $105 to $76.
According to TipRanks data, the analyst has a success rate of 36.6% and a total average return of -2.3% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Estee Lauder (EL.US)$'s main analysts recently are as follows:
Estee Lauder's Q1 performance, which exceeded expectations, was overshadowed by a Q2 forecast that didn't meet consensus, along with the withdrawal of second half guidance and a reduction in dividends. The analyst believes that the company's future is not clearly visible at this point and is looking forward to potential strategic shifts and additional productivity initiatives from the newly appointed executive team, which should also address the company's substantial cost structure.
The recent adjustment in the dividend to 35 cents per share quarterly, with the anticipation that Estee Lauder remains dedicated to a dividend payout ratio around 40%, indicates a net income forecast of $1.2 billion, or an earnings power of $3.50 per share over time. The assessment suggests that it may be too early to take advantage of the current lower stock price considering the ongoing slowdown and uncertainty in China, along with the transition to a new CEO at the beginning of the year.
Persistent sales declines and limited future visibility prompted management to withdraw guidance. The absence of clear projections is anticipated to persist for an extended period. Operational leverage challenges due to lower-than-expected volume in China and Asia's travel retail sector suggest that the execution of the company's plan and the realization of returns may be postponed. It is therefore suggested that investors await more favorable indications of demand improvement.
Note:
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