UPDATE: Deutsche Bank Initiates Coty at Buy on Good Market Position

In a report published Tuesday, Deutsche Bank analyst Bill Schmitz Jr. initiated coverage on Coty COTY with a Buy rating and $20.00 price target.

In the report, Deutsche Bank noted, “Despite outsized European exposure and resulting organic growth slowdown, we believe Coty is well positioned to continue to capture growth in the rapidly expanding global prestige cosmetics industry. Middle class creation, urbanization and female workforce participation should drive a growth tailwind, with Coty maintaining share with continuous new product activity and ongoing diversifying acquisitions leveraging a highly cash generative business model. We are initiating with a Buy rating and $20 price target.”

Coty closed on Monday at $16.95.