Market Overview

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

Share:

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

DateFirmActionFromTo
Apr 2019DowngradesBuyHold
Apr 2019MaintainsMarket PerformMarket Perform
Apr 2019DowngradesBuyNeutral

View More Analyst Ratings for COTY
View the Latest Analyst Ratings

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

 

Related Articles (COTY)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
SPOTMaintains172.0
SAVEMaintains75.0
ROPMaintains370.0
MAMaintains278.0
ALXNMaintains164.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Apple's iTunes Reaches One Billion Podcast Subscriptions (AAPL)

UPDATE: Bank of America Initiates Noodles & Co. at Neutral on Valuation