Analysts at Bank of America Corp. began coverage on shares of Coty (NYSE:COTY) in a research report issued to clients and investors on Tuesday, Analyst Ratings Network reports. The firm set a “buy” rating on the stock.
The analysts wrote, “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.”
Shares of Coty (NYSE:COTY) traded up 0.46% during mid-day trading on Tuesday, hitting $17.34. Coty has a one year low of $16.31 and a one year high of $17.65. The stock’s 50-day moving average is currently $17.1. The company’s market cap is $6.638 billion.
Four analysts have rated the stock with a hold rating and six have given a buy rating to the company. The stock presently has an average rating of “Buy” and an average target price of $20.00.
Coty Inc is engage in the manufacturing, marketing and distribution of women’s and men’s fragrances, color cosmetics and skin and body care related products globally.
