FMP
Apr 2, 2024 12:32 PM - Davit Kirakosyan
Estee Lauder (NYSE:EL) shares gained more than 2% pre-market today after Citi analysts adjusted their rating on the company to Buy from Neutral, while also increasing the price target to $175 from $160.
The analysts expressed optimism that Estee Lauder is approaching a turning point in sales as channel inventories in the Asia Pacific Travel Retail sector are stabilizing, and the company is achieving a more balanced sell-in versus sell-out.
Citi highlighted that Estee Lauder's stock faced a downturn in 2023, declining by 41% due to substantial sales and profit impacts from the travel retail inventory reduction and adverse margin mix. However, they noted that over the last six months, Estee Lauder has consistently indicated that Asia Pacific Travel Retail inventories would align by the end of the third fiscal quarter of 2024.
This stance, coupled with CEO Fabrizio Freda's positive remarks and demeanor at recent company events, has bolstered Citi's belief that Estee Lauder is on the verge of reaching this critical inflection point.
Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...