There’s a lot to be optimistic about in the Consumer Goods sector as 2 analysts just weighed in on The Estée Lauder Companies Inc (EL – Research Report) and Apple Inc (AAPL – Research Report) with bullish sentiments.
The Estée Lauder Companies Inc (EL)
Evercore ISI analyst Robert Ottenstein maintained a Buy rating on The Estée Lauder Companies Inc on August 12 and set a price target of $190. The company’s shares closed last Monday at $180.79.
“We argue that the outlook for Q1 F20 sales, more than the magnitude of Q4 earnings beat, best indicates EL’s 2020 earnings power and reflects mgmt. assessment of the return on its reinvestments to 1) prolong Asia’s momentum; 2) stabilize and turnaround the U.S. business.”
According to TipRanks.com, Ottenstein is a 3-star analyst with an average return of 4.5% and a 62.5% success rate. Ottenstein covers the Consumer Goods sector, focusing on stocks such as Coca-Cola European Partners plc, Constellation Brands Inc, and Anheuser-Busch Inbev Sa.
Currently, the analyst consensus on The Estée Lauder Companies Inc is a Moderate Buy with an average price target of $190.
Apple Inc (AAPL)
In a report released yesterday, Amit Daryanani from Evercore ISI maintained a Buy rating on Apple Inc, with a price target of $238. The company’s shares closed last Monday at $208.97.
“We maintain our OP rating and $238 target on AAPL as we see a confluence of a) services acceleration, b) gross margin upside, c) capital allocation and d) reasonable Sept-qtr bogey as enablers for stock upside. AAPL Tariff Impact: We have estimated that tariffs could negatively impact 4-8% (under 10% scenario) and 10-20% (under 25% scenario). Our math assumes ~1/3 of total COGS are subject to US tariffs with the remaining COGS balance either representing international or services costs. The low end of our 4- 20% range assumes 10% tariffs with ~50% of costs passed on to the customer while the high-end assumes 25% tariffs and 100% of costs absorbed by AAPL.”
According to TipRanks.com, Daryanani is a 5-star analyst with an average return of 16.3% and a 66.8% success rate. Daryanani covers the Consumer Goods sector, focusing on stocks such as Hewlett Packard Enterprise, Dell Technologies Inc, and Plantronics.
Apple Inc has an analyst consensus of Moderate Buy, with a price target consensus of $221.28, representing a 10.1% upside. In a report issued on July 29, UBS also maintained a Buy rating on the stock with a $235 price target.
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