TD Cowen analyst Oliver Chen sees “increased urgency” for Coty (COTY) to develop proprietary capabilities and drive innovation after Kering (PPRUY) agreed to sell its beauty unit to L’Oreal (LRLCY). The Gucci license and others will be going to L’Oreal, TD points out. It believes Coty “needs to build and emphasize proprietary formulations, brand-building, and verticalized capabilities that consumers cannot get anywhere else.” TD keeps a Hold rating on Coty with a $4 price target. The stock in morning trading is down 2% to $4.24.
Claim 30% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on COTY:
- Gucci license loss ‘material headwind’ for Coty, says Jefferies
- Coty’s Strategic Challenges and Opportunities Amidst Competitive Pressures
- Coty’s Transitional Phase: Balancing Promising Opportunities with Strategic Challenges
- Coty Completes $900 Million Senior Notes Offering
- Coty Announces $900 Million Senior Notes Offering