© Reuters. Coty (COTY) shares rise after TD Cowen upgrade
TD Cowen analysts raised shares of Coty (NYSE:) to Outperform from Market Perform in a note Thursday, lifting the stock price target to $16 from $13 per share.
Analysts said the company’s “innovation, premiumization and perfumetok” captivate new customers. Coty shares have risen more than 2.8% following the upgrade.
“COTY is a premiumizing diversified global beauty powerhouse now driving best practices & prudent investments in attractive categories/geographies,” explained the analysts.
“We expect continued momentum in fragrance (~55% mix), innovation in Consumer Beauty & global growth, including China/Brazil,” they added.
Analysts also said they feel COTY’s valuation is attractive, while a bull case could be COTY achieving 20-22% EBITDA margins by FY27.
