Estee Lauder (NYSE:EL) Improving Operating Margins

Although they don't like the valuation of Estee Lauder (NYSE:EL) at this time, UBS (NYSE:UBS) does believe they're making strong progress toward improving operating margins.

UBS said, "We believe Estée Lauder is making solid progress towards improving operating margins, all while investing behind top-line growth...We are raising our 2013 margin estimate from 14% to 14.5%, and our FY 2011-FY 2013 EPS estimates as well. Our FY 2011 EPS estimates goes from $3.07 to $3.23, and FY 2012 goes from $3.49 to $3.76, and FY 2013 goes from $4.08 to $4.35."

UBS maintains a "Neutral" rating on Estee, which closed Friday at $75.37. UBS raised their price target on them from $63 to $74. Trading volume was over double the daily 3-month average in the last trading session.