12:50 PM EDT, 05/01/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

Our 12-month target of $140, up $4, is 36x our FY 25 (Jun.) EPS view of $3.88 (down $0.25; FY 24 down $0.04 to $2.19), a premium to the 33x, 10-year forward P/E. FQ3 (Mar.) adj-EPS of $0.97 (+104% Y/Y) beat by $0.47 on revenue of $3.9B (+5% Y/Y), in line with consensus. Organic growth of 6% was led by Skin Care (+9%) and Make Up (+4%), but offset by Hair Care (-4%). Organic growth was lifted by Asia travel retail, but overshadowed by flat growth in developed markets and continued softness in China. Skin Care strength lifted gross margins 290 bps to 71.9%, while reinvestment shifts to Q4 benefited SG&A. EL lowered organic growth contraction by 1.5%, but lifted EPS by $0.05 (mid-points). EL sees its innovation pipeline driving organic growth in 1H FY 25. We view inventory management favorably, but see cash cycle lengthening as an offset. With stagnant consumer confidence, we believe the benefits from EL's restructuring plan will minimally flow to FY 25 EPS; shares reflect a full recovery, limiting upside.