Shares of Estée Lauder have fallen more than seven percent in the past three months, but one analyst believes the tide may soon turn.
On Tuesday D. A. Davidson's Linda Bolton Weiser upgraded the stock to buy from neutral and raised her 12 -18 month target to $167 -- a 22% upside from Tuesday's close. Estée Lauder's "fundamentals are the strongest we've seen in years," she wrote in a note to clients. She also noted the company's "margin expansion goal" as well as "strong growth in China" as reasons to own the stock.
But not everyone is a believer. "Halftime Report" trader Stephanie Link likes the beauty space and the consumer theme more broadly, but she believes Ulta Beauty is the better bet. A managing director at Nuveeen, which has $970 billion in assets under management, Link recently sold Estée Lauder in favor of Ulta Beauty.