Cosmetics maker Estee Lauder Companies Inc. (EL) on Friday saw its coverage initiated with an “Outperform” rating by analysts at Wells Fargo.

The firm also set a $59-62 price target on EL, suggesting up to a 14% upside to the stock’s Thursday closing price of $54.49.

A Wells Fargo analyst commented, “We view EL’s deep and experienced management team as best in class among our beauty and personal care coverage. Organic sales growth will likely moderate in the next few years from unsustainable recession-recovery growth rates, but should still progress mid to high single digits as management strategically invests in the fastest-growing parts of the beauty industry: the travel retail channel and developing and emerging (D&E) markets including China and Brazil.”

Estee Lauder shares rose 55 cents, or +1%, in premarket trading Friday.

The Bottom Line
Shares of Estee Lauder (EL) have a .97% dividend yield, based on last night’s closing stock price of $54.49. The stock has technical support in the $50 price area. If the shares can firm up, we see overhead resistance around the $59-$60 price levels.

Estee Lauder Companies Inc. (EL) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.