Estee Lauder price target lowered to $70 from $75 at Goldman Sachs

Goldman Sachs lowered the firm’s price target on Estee Lauder (EL) to $70 from $75 and keeps a Neutral rating on the shares. The stock fell sharply after the company’s Q2 earnings, with the sizable sell-off likely due to meaningfully lower than expected Q3 guidance, uncertainty whether the new ‘Beauty Reimagined’ strategic vision will be enough to turn the business around, and still limited visibility on the management’s recovery path forward, the analyst tells investors in a research note. The combination of continued softness on the topline and the volume deleverage will likely remain an overhang in the near-term until there are tangible benefits from Estee Lauder’s new strategic plan and pending better visibility into a recovery, Goldman added.