Estee Lauder downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Estee Lauder to Equal Weight from Overweight with a price target of $140, down from $164. The company’s pace of sales recovery now is lower than expected with Estee’s reduced implied fiscal Q4 topline guidance, the analyst tells investors in a research note. The firm thinks this lingers longer-term into fiscal 2025 and 2026 given external macro risk and category pressure, as well as lingering internal market share issues. It cites a more muted sales recovery for the downgrade.