(CercleFinance.com) – Estée Lauder shares recorded the strongest growth in the S&P 500 index on the New York Stock Exchange on Thursday, benefiting from an increase in Bank of America’s recommendation from ‘hold’ to ‘buy’. on the title of the cosmetics group.
In a note, the broker estimates that the New York group’s results have now reached a low point and explains that it expects a re-acceleration of activity and growth.
‘Estée Lauder’s response to the volatile operating environment that has prevailed since 2020 has led the company to strengthen its portfolio of new products, identify levers to improve its margins and stabilize its sales and contribution results from China’, explains the broker.
According to BofA, these initiatives should enable the company to achieve its objective of revenue growth of between 6% and 8% accompanied by a double-digit increase in earnings per share (EPS).
Its price target is thus increased from 160 to 170 dollars, which highlights an upside potential of more than 17%.
Around 11:30 a.m. (New York time), the stock climbed more than 5%, compared to an increase of only 0.1% for the S&P 500 index.
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