Street View: Brokerages slash Estee Lauder's PT after pulling annual forecasts
** Cosmetics maker Estee Lauder EL.N pulled its annual sales and profit forecasts on Thursday due to the demand slowdown for luxury beauty products in major markets such as China
** On Thursday, the stock saw its worst day yet, falling ~21% to $68.94 at close
** At least seven brokerages cut PT; median PT of 30 analysts is $83
LACK OF VISIBILITY AND NEW CEO HOPE
** Citi ("neutral", PT: $80 from $105) downgrades rating from "buy" due to a lack of visibility on sales, profit with the China and travel retail trends continuing to worsen and no clarity on the strategic changes under upcoming CEO Stéphane de La Faverie
** Piper Sandler ("overweight", PT: $89 from $122) says shares could reverse upon new leadership and efforts to improve visibility, and is optimistic as management is sticking to their word around gross margin improvements and brand re-build progress
** JP Morgan ("neutral", PT: $74 from $113) downgrades from "overweight" and doesn't expect to receive any visibility for at least another three months, but says the new c-suite management has the potential to bring about much-needed operational change
Reporting by Neil J Kanatt in Bengaluru
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