Estee Lauder downgraded to Hold from Buy at Jefferies

Jefferies analyst Ashley Helgans downgraded Estee Lauder to Hold from Buy with a price target of $190, down from $270. Growing concerns around the recovery of Estee’s key growth drivers in China skincare have led the analyst to cut estimates 10% below consensus for fiscal 2024. The company’s China sales and a new Tmall data set point to “prolonged recovery,” and concentration in the region will be hard to offset in U.S., where the company’s brands are losing share, the analyst tells investors in a research note. The firm adds that a cycle shift to makeup from skincare and skincare trade down will pressure Estee Lauder’s margins.