As reported earlier, Evercore ISI analyst Robert Ottenstein initiated Estee Lauder with an Outperform rating and a price target of $170 as part of his broader Global Beauty sector research note. The analyst says the sector offers the "best fundamentals" within Home and Personal Care and is also "among the best" in Consumer Staples, forecasting acceleration of about 5% over the next 3 years on growth in e-commerce and expansion in China. Ottenstein notes that Estee Lauder is among the "most compelling" investment stores in the sector as a "pure-play" in high-end beauty, adding that the company's operating margins should outperform expectations with 60bp expansion. The analyst further states that Estee Lauder's investment narrative is shifting to margin upside and modest sales growth from that of declining department store sales.