The company has been hit by the current crisis and the stock has plunged after the Report released this Monday 5/11. Investors have left their positions due to concerns around financial conditions, bad results and dividends on hold.
Currently, the stock is on its historical lows, which makes it a great entry. COTY announced a deal with KKR, and will receive an immediate $750M investment. The entire transaction could result in additional cash proceeds of approximately $3 billion. With this liquidity injection and a strong capital back-up, COTY is likely to strengthen its position against EURONEXT:OR , NYSE:EL , and other competitors. The current analyst price targets reiterated on 5/12 are between $8 ( RBC Capital) and $6 (Deutsche Bank). Recent hedge fund activity is also in line with positive sentiment around COTY stock. For more details check the research tab in the stock details here at eToro.
I believe in COTY as a company with strong foundations because it is a strong global player:
- #1 in fragrances
#2 in salon hair
#3 in color cosmetics
NYSE:SBH NASDAQ:ULTA AMEX:XLY NYSE:PG
However I do agree this stock is still risky and will likely be volitile going forward, given the current uncertainty on consumer markets.
I would love to hear the details of those points.
Thank you for sharing your insights
Thank you for the reply