Natura &Co upgraded to Buy from Neutral at Citi

Citi analyst Joao Pedro Soares upgraded Natura &Co to Buy from Neutral with a price target of R$21, up from R$15. Following the sale of TBS, Natura starts the year off as “a new/leaner company with a meaningfully better balance sheet,” the analyst tells investors. Given the reduced complexity, management may now focus primarily on the integration of Natura and Avon in Latin America and while the firm acknowledges the execution risks and potential setbacks that may surface, it is giving management “the benefit of the doubt” that the Latam margin will converge to 16%.