Coty downgraded to Hold at Jefferies amid ‘ongoing issues’

Jefferies downgraded Coty (COTY) to Hold from Buy with a price target of $4, down from $6. Coty has signaled plans to pull back mass cosmetics investment, which likely exacerbates declines, and the portfolio is now increasingly reliant on fragrance, where the company is losing share as the category moderates, the analyst tells investors. The firm cites a lack of clear fundamental drivers as well as management credibility for its downgrade amid the “ongoing operational issues.”