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UPDATE: Bank of America Initiates Coty at Buy on Unique Growth Story


In a report published Tuesday, Bank of America analyst Olivia Tong initiated coverage on Coty (NYSE: COTY) with a Buy rating and $19.50 price target.

In the report, Bank of America noted, “We are initiating coverage of Coty, a global fragrance, color cosmetics, nail, and skincare company, with a Buy and $19.50 PO. Coty is a differentiated, high-quality, mid-sized company that should generate free cash flow well in excess of peers, in our view. Our Buy is based on: (1) strong FCF, which positions Coty well to redeploy cash toward driving both organic and inorganic growth over time; (2) a long, mostly solid history on acquisitions, JVs, and other partnerships which have been accretive well beyond year one; (3) a deep management team and Board that is far superior to most new issues in our view; and (4) favorable income tax attributes that will reduce cash taxes and so boost cash EPS for 13 more years. Coty's cash flow prospects position it well to potentially participate in M&A, and its size affords it the ability to do deals that can meaningfully move the needle on future growth prospects. This has been a value-creating strategy within U.S. staples, and for Coty in the past.”

Coty closed on Monday at $16.95.

Latest Ratings for COTY

Feb 2021Evercore ISI GroupUpgradesIn-LineOutperform
Feb 2021DA DavidsonMaintainsNeutral
Feb 2021Morgan StanleyMaintainsEqual-Weight

View More Analyst Ratings for COTY
View the Latest Analyst Ratings


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Posted-In: Bank of America Olivia TongAnalyst Color Initiation Analyst Ratings

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