Shares of Estee Lauder Companies rallied to a record high Tuesday, after Wells Fargo upgraded the cosmetics company, citing sales growth acceleration and reduced near-term risks. Analyst Chris Ferrara raised his rating to outperform from market perform, and listed his valuation range on the stock to $90 to $92 from $79 to $81. He said he is now less concerned about risks associated with slower growth in the U.S., China and travel retail. Ferrara also said the company is in the early stages of growth in emerging markets, so it is less susceptible to slowdowns in those regions. "While the near-term timing is not ideal, we believe [Estee Lauder's] superior growth opportunity relative to peers should drive outperformance over time," Ferrara wrote in a note to clients. The stock was up 1.3%, and hit an all-time intraday high of $84.39 earlier in the session. It has climbed 10% year to date, while the S&P 500 has gained 1.9%.
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