COTY

Coty, Inc.

Consumer


Presented:03/05/2021
Price:$7.82
Cap:$6.00B
Current Price:$8.18
Cap:$7.10B

Presented

Date03/05/2021
Price$7.82
Market Cap$6.00B
Ent Value$11.78B
P/E RatioN/A
Book Value$4.02
Div Yield0%
Shares O/S766.80M
Ave Daily Vol13,521,684
Short Int3.63%

Current

Price$8.18
Market Cap$7.10B
Coty, Inc. engages in the manufacture, market, sale, and distribution of branded beauty products. It operates through the following segments: Consumer Beauty, Luxury, and Professional Beauty. The Consumer Beauty segment offers color cosmetics, retail hair coloring and styling products, body care, and mass fragrances. The Luxury segment comprises of prestige fragrances, premium skincare, and premium cosmetics. The Professional Beauty segment consists hair and nail care products for salon professionals. The company was founded by Francois Coty in 1904 and is headquartered in New York, NY.

Publicly traded companies mentioned herein: Burberry Group PLC (BRBY LN), Coty Inc (COTY), Edgewell Personal Care Co (EPC), Estee Lauder Cos Inc/The (EL), HUGO BOSS AG (BOSS GR), Inter Parfums Inc (IPAR), KKR & Co Inc (KKR), L’Oreal SA (OR FP), LVMH Moet Hennessy Louis Vuitton SE (MC FP), Revlon Inc (REV)

Highlights

The presenter is long shares of Coty Inc (COTY), a beauty products conglomerate that has historically operated in the mass consumer, luxury, and professional beauty segments. He had been short the stock on and off for several years due to a flawed rollup strategy that decimated COTY’s competitive positioning and fundamentals. Following the installation of a new leadership team, he now sees an underappreciated turnaround story, projects a sharp recovery in the short term following mass vaccinations, and expects a greater market appreciation in the back half of 2021 when management outlines its strategy and outlook. At $7.80 per share, he deems the risk/reward setup as attractive. On a SOTP basis, he reaches a base case price target of $11 – $12 per share with incremental upside to $15 – $16 in his bull case.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.