UPDATE: Bank of America Reiterates on Coty as Risk/Reward is Looking Better
In a report published Wednesday, Bank of America analyst Olivia Tong reiterated a Buy rating on Coty (NYSE: COTY), and raised the price target from $16.00 to $17.00.
In the report, Bank of America noted, “While visibility can be limited and the weather has put a chill in many company's results this winter including Coty's, we reiterate our Buy rating following Coty's first investor conference presentation since last June's IPO and our follow-up meetings as we believe the worst will soon be over and that downward consensus revisions are less likely from here.
"We see multiple positive catalysts going forward including: 1) lapping of aggressive discounting and easing comps; 2) contribution from recent distribution gains/partnerships; 3) potential for accretive M&A; 4) faster realization of cost cutting; and 5) benefits from share repurchase. The key risk is clearly if underlying weakness in fragrances and nails worsen, diminishing the benefit of recent distribution gains and weighing on valuation. CEO Michele Scannavini and CFO Patrice de Talhouet presented at our Consumer Conference yesterday.”
Coty closed on Tuesday at $15.21.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.