Estee Lauder Gets Analyst Upgrade, Stock Takes Off

Estee Lauder Cos. (EL) shares jumped Thursday after Bank of America Securities (BofA) analysts upgraded the stock and raised their price target for it, saying they see “meaningful growth” ahead for the beauty products maker.

BofA changed its rating on Estee Lauder to “buy” from “neutral,” and increased the price target from to $170 from $160.

The analysts said in a report that the company’s profit and sales appear to have bottomed out, and that its “savings targets and innovation efforts” are a clear effort to adapt to the reality of a declining Chinese market.

They praised Estee Lauder for its renewed focus on new products and its move away from reliance on sales from China and the travel market.

The report came a day after Estee Lauder announced it would sell its Clinique brand in the U.S. Amazon.com Inc. (AMZN) Premium Beauty store, the first time it has put its products on that platform. 

Chief Executive Officer Fabrizio Freda said Estee Lauder was “strategically expanding our consumer reach in the U.S.,” adding that a “select few” more products would be available on Amazon over the coming months.

Estee Lauder shares were up 6.2% at $154.08 at around 2:20 p.m. ET Thursday. The stock has lost more than one-third of its value over the past 12 months.