NEW YORK, January 30 (FinanceEnquiry.com) - Analyst Esther Kwon of S&P Capital IQ has upgraded her rating on the shares of Estee Lauder Companies (NYSE: EL) from Hold To Buy. The 12-month target price is raised from $61 to $66.

In a research note published this morning, the analyst mentions that Estee Lauder's December quarter EPS estimates are raised by $0.05 to $1.05, ahead of December quarter results, which are expected to be released on February 3. Kwon sees strong results due to the company's constant new product force and margin progress, as well as overall Prestige beauty category strength.

In the long term, Estee Lauder's margins are expected to rise on positive product mix shift, as skin care contributes to a larger proportion of sales, led by emerging market growth, and operating efficiency improvements, S&P Capital IQ adds.  The EPS estimates for FY 12 (Jun) and FY13 have been increased from $2.25 to $2.40 and from $2.50 to $2.70, respectively.