DA Davidson analyst Linda Bolton Weiser raised the firm’s price target on Estee Lauder to $191 from $179 and keeps a Buy rating on the shares. The company’s sales and earnings downturn was largely due to excess channel inventory in Hainan and the daigou channel, but after months of data collection, the firm has detected a major change at the daigou seller that it had been monitoring online, potentially indicating that its channel inventory has been worked through, the analyst tells investors in a research note. The firm adds that its confidence is now higher that Estee Lauder can return to positive organic sales growth in Q3, with possible double-digit growth coming in Q4.
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