Goldman Sachs sees new growth channels for Estee Lauder

|By:, SA News Editor

Goldman Sachs lifts Estee Lauder (NYSE:EL) to a Buy rating after having the cosmetics stock set at Neutral.

Estee Lauder is seen benefiting as new distribution channels and smaller brands spark growth. The company's exposure (22% of sales) to department stores is still a risk.

The firm lifts its price target on Estee to $103 from $85 to rep 23% upside potential for shares. The $103 PT is based on an equal weighted 25X EV/EBITDA multiple and 15X FNTM earnings estimate.

EL +0.12% premarket to $83.60.