UPDATE: Deutsche Bank Lowers PT on Coty on Strong Latent Growth Potential
In a report published Wednesday, Deutsche Bank analyst Greg Poole reiterated a Buy rating on Coty (NYSE: COTY), but lowered the price target from $20.00 to $19.00.
In the report, Deutsche Bank noted, “Strong latent growth potential trumps short-term headwinds. Solid demographic and geographic tailwinds should drive growth over time at a reasonable valuation, believing short-term headwinds from mass retailer destocking manageable provided global category consumption trends don't contract further. With leverage to recovering developed markets macro and resulting fragrance category recovery, along with nascent EM opportunity and cash generative balance sheet redeployed to diversify portfolio via acquisitions, we maintain Buy and continue to see upside to our $19 price target (lowered from $20).”
Coty closed on Tuesday at $15.64.
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