Estee Lauder downgraded to Neutral from Overweight at Piper Sandler

Piper Sandler analyst Korinne Wolfmeyer downgraded Estee Lauder to Neutral from Overweight with a price target of $195, down from $265. While sentiment on Estee has weakened over the past few months, there is still see enough near-term downside risk to offset the eventual China recovery tailwinds that many are anticipating, the analyst tells investors in a research note. Piper still thinks there is “great” long term potential from China and Hainan, but sees several areas of weakness that could likely “waylay” on an eventual recovery. The stock’s risk/reward looks more balanced than positive right now, given Estee’s limited or lack of market share improvement in other geographies, unfavorable mix shift, and rising competition from mass, contends Piper.