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Bank of America sees Coty (NYSE:COTY) stemming “years of declines” and growing market share in the next 12 months, reinstating coverage of the stock at “Buy” on Wednesday.
Specifically, the bank’s analysts advised clients that the cosmetics company’s September 21 investor day could serve as a strong near term catalyst for shares. The bank expects management to highlight stabilization in the business, growing market share in consumer beauty sales as of late, and the alleviation of debt concerns over time.
“We believe Coty will benefit from several factors, including global momentum in Prestige, stabilization/growth in Consumer Beauty, continued cost savings effort despite headwinds, and modest gross margin expansion,” the initiation note explained. “Further, Coty is committed to deleveraging, which should remove an overhang on the stock farther out.”
Given this optimistic assessment, a $12 price target was assigned to the stock alongside a “Buy” rating.
Read more on the bank’s similarly bullish outlook for e.l.f. Beauty.
