The firm said it lowered its rating on the cosmetics company as it believes the stock is fully valued as Estee Lauder is facing a rise in competition across the world.
Estee Lauder is also dealing with market share challenges in its U.S. department store channel and its Chinese business segment, theflayonthewall.com reports.
Wells Fargo reduced its price target range on Estee Lauder to between $76 and $78, from between $82 and $84.
On Tuesday, Estee Lauder released its fiscal 2015 first quarter earnings results and reported a decline in net income to $228.1 million, or 59 cents per share, compared to $300.7 million, or 76 cents per share for the fiscal 2014 first quarter.
Net sales for the most recent quarter decreased by 2% to $2.63 billion, from $2.68 billion for the year ago quarter.
Separately, TheStreet Ratings team rates LAUDER (ESTEE) COS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LAUDER (ESTEE) COS INC (EL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."
You can view the full analysis from the report here: EL Ratings Report