UPDATE: Citigroup Lowers PT on Coty After Ending FY13 on a High Note

In a report published Wednesday, Citigroup analyst Wendy Nicholson reiterated a Neutral rating on

, but lowered the price target from 19.00 to $17.00. In the report, Citigroup noted, “COTY's FY13 closed with the strongest quarterly sales growth of the year, and solid pro forma operating margin expansion—leading to full year growth rates of 1% on the top line, 7% in operating income and 4% in pro forma EPS. For the year, Fragrances grew to be a bigger piece of the pie (to 54% of sales)—perhaps a negative given heightened competitive activity in this category as we look ahead—while emerging markets grew 100 bps to represent 24% of sales—which we consider a positive given the stronger growth rates that most of our HPC companies generate in emerging markets.” Coty closed on Tuesday at $15.64.