Coty valuation ‘looks compelling,’ says Citi

Citi analyst Filippo Falorni notes that WWD reported that Coty (COTY) was looking for buyers in a potential two-part sale for its Prestige and Consumer Beauty businesses, stating that Coty is in very early stages of discussions and has been in talks with Interparfums (IPAR), whom sources suggest would only be interested in select Prestige fragrance brands. The firm, which continues to believe Coty’s valuation looks “compelling,” arrives at an implied $6.50 share price when valuing Coty on a sum-of-the-parts basis, says the analyst. Citi has a Buy rating and $6.50 price target on Coty shares.