Sum-of-the-parts analysis points to at least $8 in Coty deal, says Evercore

Evercore ISI reiterated an Outperform rating and $10 price target on Coty (COTY), noting that the shares are trading higher after WWD reported the company may be looking for buyers, with the caveat that “it would not be a one-and-done deal.” It is clear that Coty’s shares are undervalued and they are the only beauty stock discounting value destruction in perpetuity, the analyst tells investors in a research note. The firm added that, considering the differences in competitiveness and attractiveness among Coty’s assets, it believes a sum-of-the-parts analysis points to a deal valuation of at least $8 per share.