Morgan Stanley recommends buying Estee Lauder (EL -0.8%) following the post-earnings decline.
"Net, we still see short and long-term upside vs market expectations, and EL now is trading at only a 10% average FY20 EV/EBITDA premium vs PG/CL, which looks low given much greater growth at EL," says MS analyst Dara Mohsenian.
Mohsenian and team see Estee Lauder's FY20 revenue guidance as coming in conservative and think the skin care business is a bright spot.
The firm keeps an Overweight rating on EL.
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