Estee Lauder’s (EL) bid to sell its Clinique brand through Amazon.com’s (AMZN) Premium Beauty store is a “logical” next step for the cosmetic company, Oppenheimer said Thursday.
The deal, announced Wednesday, should enhance Estee Lauder’s distribution channels and boost its competitiveness. L’Oreal saw a 70% increase in demand for its products after they began selling on the Amazon platform, Oppenheimer analysts said.
The company’s latest move appears favorable, but the elevated stock price and an uncertainty around its travel retail channel keep the risk/reward model unchanged.
Estee Lauder “shares remain on our radar,” the investment firm said, issuing a perform rating with no price target.
Estee Lauder shares were more than 6% higher in recent trading.