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Coty downgraded to Hold from Buy at Canaccord

Canaccord downgraded Coty (COTY) to Hold from Buy with a price target of $5, down from $8. The company’s fiscal Q3 report indicated worsening trends for the business despite other beauty brands generally seeing resilient results, the analyst tells investors in a research note. The firm says Coty’s prestige business, which it believed was the bright spot of the business, is also starting to face pressure. The company is currently missing on execution and facing near-term industry headwinds including demand slowing, contends Canaccord.

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