Estee Lauder Faces Headwinds In Korea's Travel Retail, But Demand Strength Remains A Tailwind, Bullish Analyst says

Telsey Advisory Group Analyst Dana Telsey reiterated an Outperform rating on the shares of Estee Lauder Companies, Inc. EL with a price target of $250.
The analyst believes limited visibility to Korea’s travel retail recovery. This, coupled with a slower rebound in international travel, may pose headwinds for the company.
The lag in Asian travel retail can represent lost business and profitability, the analyst notes.
However, the channel’s forward recovery prospects and the strength in demand across the rest of the business are a tailwind.
The analyst expects the company to benefit from solid margins driven by increased near-term investments in brand building, manufacturing, R&D, and IT that can further accelerate profitability improvement as FY24 progresses.
These apart, the new manufacturing facility that has just opened in Japan will help ease lead times to the market and improve inventory management.
In addition, the recovery of China over time presents more growth opportunities, the analyst adds.
Also Read: Why Cosmetics Company Estee Lauder's Shares Are Surging Today
Price Action: EL shares are trading higher by 0.79% at $205.15 on the last check Monday.

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