UPDATE: Piper Jaffray Initiates Coty at Overweight on Best-In-Class Position

In a report published Wednesday, Piper Jaffray analyst Neely J.N. Tamminga initiated coverage on Coty COTY with an Overweight rating and $21.00 price target.

In the report, Piper Jaffray noted, “We are initiating coverage on COTY shares with an Overweight rating and $21 price target given our belief that Coty is a best-in-class innovator and brand steward with a financial roadmap calling for at least +LSD% revenue and +HSD% net income growth amidst a favorable backdrop for the fragrance and beauty industry. We believe there are many opportunities for Coty to increase sales of its power brands (such as Calvin Klein and Marc Jacobs), by expanding global distribution and continuing to focus on innovation. A series of strategic acquisitions made in Dec 2010/Jan 2011 has given Coty a formidable presence in color cosmetics and skin care, and also provide Coty with new channel opportunities, such as accelerated mass distribution in China (aided by acquisition of TJOY) and direct-to-consumer e-commerce capabilities (philosophy).”

Coty closed on Tuesday at $16.95.