BofA analyst Bryan Spillane downgraded Estee Lauder to Neutral from Buy with a price target of $100, down from $140. The analyst cites weaker than expected beauty category performance in China for the downgrade. The firm says its prior thesis, predicated on stable demand trends in China and improving market share trends in the U.S. supporting achievement of profit recovery targets, was wrong. China appears to have decelerated since March and U.S. industry demand is softening, which calls into question the timing of Estee’s profit rebound, the analyst tells investors in a research note.
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