Redburn starts Estee Lauder at Sell with China reopening priced in

Redburn analyst Christopher Pitcher initiated coverage of Estee Lauder with a Sell rating and $210 price target. The company’s growth has been cyclical, and the "equity story is an interplay" between a China reopening and the risk of a U.S. and European slowdown, Pitcher tells investors in a research note. The analyst assumes a steady reopening in 2023 but with Estee’s growth "partially absorbed by high inventories at its main travel retail customer." The shares are trading at over a 20% premium to the 10-year absolute and relative average, implying a full Chinese reopening is largely discounted, leaving Estee more at risk from a slowdown in the U.S. and Europe, writes Pitcher.