A challenging outlook for Estee Lauder 's Asia business has pushed Citi to the sidelines on its stock.
Analyst Filippo Falorni downgraded the beauty company's stock to neutral from buy and cut his price target by $45 to $195.
His new target implies shares could rise 8.3% in the next 12 months from Monday's close.
Citi's checks in China show consumers continue to trade down from premium to mass market brands, while Estee Lauder's inventories remain elevated, Falorni said.
Beyond China, Falorni also noted the company's recent disclosure that parts of its business were disrupted by a cyberattack.
Persons:
Estee Lauder, Filippo Falorni, Falorni, Michael Bloom
Organizations:
Citi, EL
Locations:
Asia, Monday's, 2H24, China