LRLCF - Estée Lauder: Beauty Stock On Sale After 26% Fall Since January
- EL shares have fallen 26% since their peak in early January, the result of wider market turmoil following the Russian invasion of Ukraine.
- While EL has suspended all commercial activity in Russia, its exposure to the country is just slightly over 1% of total revenues.
- Operational performance has continued to be strong, with organic sales growth at 14% last quarter and guided to be 10-13% for FY22.
- All regions and segments had good growth in Q2; we expect long-term EPS growth to be low-teens, from sales growth and margin uplift.
- With shares at $277.68, we expect an exit price of $440 and a total return of 62% (16.0% annualized) by June 2025. Buy.
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Estée Lauder: Beauty Stock On Sale After 26% Fall Since January